Chainlink (LINK) has experienced a significant retracement, erasing a substantial portion of the rally witnessed since the onset of the month. Investors are now facing a crucial juncture as the altcoin’s next move is anticipated to extend this decline, with profit-taking becoming more prevalent than ever.
The continuous decline in Chainlink’s price is causing concern among investors who had enjoyed profits over the past month. This is especially true for those who acquired LINK at the current price levels. The In/Out of the Money Around Price (IOMAP) indicator, a metric gauging the profitability of assets bought within a 15% range of the current price, reveals potential immediate consequences.
According to the indicator, approximately 34.97 million LINK, valued at over $500 million, is on the brink of losing its profitability if Chainlink’s price falls below the acquisition price of $14.08. To mitigate potential losses, LINK holders may opt to sell their holdings.
However, not all investors are facing losses. Those who entered the market in the past month are currently sitting on a substantial 18% profit. This group of investors is now contemplating selling their holdings to lock in their gains, potentially triggering a broader sell-off.
Chainlink Current Price and Short-Term Outlook
In terms of the current price outlook, Chainlink is presently trading at $14.7, reflecting a 2.64% increase in the one-day chart and an 11.17% surge in the weekly chart. Recent forecasts for Chainlink suggest a further 8.78% increase, with a projected value of $15.73 by November 26.
Technical indicators are signaling a bullish market sentiment, with a staggering 97% confidence in the bullish direction. The Fear & Greed Index echoes this sentiment with a score of 66, indicating a state of greed among investors.
Looking ahead to the end of November, crypto experts are predicting an average LINK rate of $15.12 based on the price fluctuations observed at the beginning of 2023. The anticipated minimum and maximum prices for Chainlink are expected to hover around $14.47 and $15.76, respectively.
Well, the coming days will reveal whether profit-taking will lead to a sustained downturn or if the bullish momentum will prevail, defying the odds and propelling LINK to new heights.
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