Analyst Crypto Patel suggests Chainlink (LINK) is trading near a crucial monthly demand zone between $4.00 and $4.70, which he identifies as an institutional accumulation area. Despite this potential undervaluation, technical indicators on the weekly chart, including a low RSI and negative MACD, signal current weakness and call for investor caution.
The cryptocurrency Chainlink (LINK) is being analyzed as potentially undervalued while testing a significant price demand zone. An analyst has identified a key monthly demand area between $4.00 and $4.70, which he describes as an institutional accumulation zone based on higher timeframe technical setup.
Analyst Crypto Patel mentioned that a multi-year price compression may be concluding. He stated that “LINK needs to stay above $4.00 on the monthly chart” for the long-term bullish structure to remain valid.
Potential upside targets identified within this thesis are $13, $30, $42, and ultimately $53 and above. These levels represent gains of more than 500% from current trading prices.
However, technical indicators present a more cautious picture for the digital asset. The weekly Relative Strength Index (RSI) is near 30.66, approaching oversold territory, while the Moving Average Convergence Divergence (MACD) indicator is negative.
At the time of reporting, Chainlink was trading at $8.37. The token’s 24-hour trading volume was approximately $539 million, with a market capitalization around $6.08 billion.
Chainlink serves as a decentralized oracle network connecting smart contracts with real-world data. Its role in decentralized finance and cross-blockchain connectivity makes it a closely watched asset during market downturns.
