#PriceTrendAnalysis Chainlink (LINK) Plunges 40%: Is a Price Recovery in the works?

The decentralized oracle network Chainlink has fallen nearly 40% in the last month, leaving investors wondering if a recovery is in the works.

Chainlink saw a significant drop in yesterday’s trading session, falling from highs of $19.20 to $17.28 before paring some of its losses in today’s session. At press time, Chainlink (LINK) is up 0.06% in the last 24 hours to $18.05.

According to Ali, a crypto analyst, Chainlink’s recent price correction, which has seen it decline nearly 40% in the last month, coincides with a network halving, indicating that Chainlink’s activity is slowing. The Chainlink LINK network has been halving since November 30, indicating that activity is slowing.

The price drop is also reflected in the MVRV ratio, which measures a trader’s profitability. Right now, those who bought LINK over the last 30 days are sitting on an average loss of -16%. This is a level that has historically marked selling exhaustion points.

The broader crypto market saw mixed price action early Wednesday, but most crypto assets were in the green at press time. Investors are looking ahead to the January FOMC minutes, due out Wednesday at 2pm ET, which will provide fresh insights on monetary policy and how long the Fed will keep interest rates steady.

Is a bounce possible?

In an earlier tweet, Ali pointed out that Chainlink (LINK) has historically rebounded when the MVRV dips below -16%, with past gains of 312%, 64%, 61%, 25%, and 52%. The MVRV is currently -16.3%, which could indicate another comeback is on the horizon.

Meanwhile, whales are buying the recent Chainlink price drop. Ali noted that whales have bought over $20 million worth of Chainlink in the last 24 hours, an early sign of confidence returning.

However, Chainlink needs to break above $19 to reach the $23.70 target for a rebound to be confirmed. Amid the current market uncertainty, $15.50 remains a key level to watch, as a loss of this support could negate bullish forecasts and trigger a steeper.