Chainlink’s token, LINK, is currently navigating the aftermath of October’s market downturn, where it briefly dipped below $16. Recently, it appreciated by 3%, trading around $18.5.

Alphractal’s founder, Joao Wedson, anticipates a potential upside breakout before the year closes, despite general market weakness in 2025.

LINK Approaching a Local Bottom

The MVRV Z-Score, a significant on-chain metric indicating whether an asset is undervalued or overvalued, has historically suggested strong buy signals for LINK when it turns negative. Currently, however, this metric is trending downward, signaling a more cautious investor sentiment amid this year’s lackluster demand for cryptocurrencies.

LINK’s price remains significantly lower than euphoric MVRV levels seen during a previous cycle, leading traders to speculate on when market enthusiasm might make a return.

Moreover, the Buy/Sell Pressure Delta, another reliable indicator, is presently in negative territory, frequently indicating a local price bottom with the possibility of a rebound. Wedson emphasizes verifying this signal with other on-chain models to identify critical support and resistance levels.

In the wake of October’s steep corrections, substantial short liquidation clusters have formed near $26.4 and $28.3 - these zones could prompt a rapid upward movement if price momentum revisits them.

From a technical perspective, the Dynamic Moving Average (MA) and Price Ratios are still supportive. Each instance in 2024, where LINK fell below its critical moving averages, marked a solid accumulation phase. Presently, LINK is managing to hold above the 720-day MA.

Anticipating a Lift-off?

Crypto analyst Altcoin Sherpa recently conveyed a cautiously optimistic viewpoint, asserting that LINK appears to be a “pretty decent-looking coin”. He forecasts the token’s price movement will likely remain within a range of $17 to $20 shortly. Following this consolidation phase, it could be poised for another upward leg once accumulation concludes in this range.

Another analyst drew comparisons between Chainlink’s price trajectory and the M2 Money Supply, applying an approximate 320-day offset. They suggest that a fresh phase of the bull market could initiate around late November or early December, potentially extending through to May 2026.

The analysis also pointed out that the largest liquidation event transpired just before a substantial M2 expansion, reinforcing the idea that the upcoming bull market phase could be particularly vigorous. Nevertheless, volatility and uncertainty are expected to linger until the end of November.