The post Analyst predicts a high-volatility move is imminent for Chainlink (LINK) appeared on BitcoinEthereumNews.com.

The Bollinger Bands indicator on Chainlink (LINK) is contracting predicting a major volatility phase could be imminent. High correlation with Bitcoin suggests LINK could decline further before a bullish move. Chainlink has witnessed a strong growth despite price drop with 22 new integrations. Chainlink (LINK) has been a focal point for traders and analysts alike since its sudden drop at the beginning of February. Since February 3, LINK has been oscillating between $17 and $22 with indicators signaling a possible breakout amid weeks of consolidation. Bollinger Bands squeeze signaling a possible breakout One of the most telling signs of an impending price shift for Chainlink has been the squeeze in its Bollinger Bands on the 12-hour chart. The Bollinger Bands technical indicator, which measures volatility, has tightened significantly around LINK’s price, a pattern that historically precedes major market movements. As noted by prominent analyst Ali Martinez, this squeeze could mean that LINK is on the cusp of either a sharp rally or a significant drop, depending on the market’s next move. The Bollinger Bands are squeezing on the #Chainlink $LINK 12-hour chart, signaling that a high-volatility move could be imminent! pic.twitter.com/nP4yjvAnyK — Ali (@ali_charts) February 17, 2025 A surge in Chainlink (LINK) trading activity The market has also witnessed a surge in LINK trading activity, with spot inflows and outflows showing active engagement from both bullish and bearish traders. Data from Coinglass reveals fluctuations in LINK’s net inflows and outflows, pointing to an increase in market activity. This active trading, coupled with the Bollinger Bands squeeze, suggests that traders are positioning themselves for what they believe could be a significant market shift. While there is a surge in market activity, on-chain metrics from Santiment indicate a 78% drop in whale transactions since November, with these large holders controlling 67% of…

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Filed under: News - @ February 18, 2025 10:26 am