Chainlink Price Prediction: March could be moment that LINK bulls trigger 28% meltdown as they exit

Chainlink price is closing out February with a marginal gain of just 6%.
LINK sees support nearby and has bulls desperate for a bounce.
Should support prove to be weak, the year-to-date return could become negative in March.

Chainlink (LINK) price is in distress as vital support is needed to add fresh money into its rally. On the other hand, even the smallest slip below the crucial support at $7 could be the omen that the year-to-date (YTD) value for LINK is set to turn negative for 2023. That would mean that the start of 2023 was just a dead-cat bounce.

Chainlink bulls could see their efforts erased

Chainlink price is under threat of proving that the bear trend of 2022 is still in motion and the crypto winter is far from over. Before starting to talk about that possible doom scenario, there is still one element that is currently standing between that catalytic meltdown or a mere correction. That element is $5 and could be tested in March if $7 support breaks soon.

LINK is thus in a precarious situation as a 27% decline is at risk of happening and putting the YTD value back at zero. Expect the morale among bulls to be broken, and $5 could receive further pressure. Should $5 break lower later in March or April, it will be hard to tell where this sell-off halts with $4 as the best guess.

LINK/USD weekly chart

Luckily for bulls, that $7 handle bears both the 55-day and the 200-day Simple Moving Averages (SMAs) as supportive measures. Certainly, the 200-day SMA is important and could be pivotal to underpin price action. Once the recovery rally for 2023 is confirmed, expect bulls to target $12 by this summer and bring on a 65% gain for the first half of this year.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.