Chainlink Price
Can a Push for $16 Overcome Bearish Pressure?
Published
2 months agoon
By
adminChainlink price has been declining since its peak in March despite several market-moving events. During the Bitcoin Conference week, the LINK price initially rose by 7%, only to lose all its gains in the subsequent three days.
The price of LINK has dropped by 3.9% in the last 24 hours and is trading at $12.82. This is likely due to the data from yesterday’s FOMC meeting. The Fed’s decision to leave interest rates untouched may have resulted in a market-wide dip. Chainlink needs to cool down before it can run for $16.
Chainlink Price Ready to Rally
LINK price is currently trending downward within a falling wedge pattern. The price action is also below the 50-day (green line) and 200-day (black line) exponential moving averages (EMA), indicating bearish momentum. However, the falling wedge is a bullish reversal pattern, which signals a potential breakout to the upside.
The main support levels for LINK price are $11.4 and $10. The former aligns with the lower boundary of the falling wedge, while the latter represents significant historical support below the market structure. On the flip side, Chainlink sports major resistance levels at $13.92 (50-day EMA), $14.78 (200-day EMA), and $16.00, which coincides with the upper boundary of the falling wedge.
On June 28, the Chainlink price chart flashed a death cross on the daily timeframe chart, signalling the beginning of a potential bearish trend. Recent candlestick formation indicates a consolidation phase near the $11.4 support level, suggesting LINK price may drop 11% before engaging a bullish reversal within the wedge.
The Relative Strength Index (RSI) is at 48.45, indicating a neutral stance but leaning towards bearish territory. However, it is near the oversold region, suggesting potential for upward movement. The Chaikin Money Flow (CMF) is at 0.07, indicating positive money flow and modest buying pressure.
The Chainlink price forecast shows that if it slips below $10 and fails to recover above it, it would signal market weakness. The LINK price would establish a lower low, signalling a market shift and invalidating the bullish thesis supported by the falling wedge pattern. The price of Chainlink may find further support below around $8.11.
Chainlink Whale Activity Supports Inbound Rally
Data from IntoTheBlock shows Chainlink whales have been steadily accumulating tokens for the past two months. The spikes show days when whales deposited large amounts of LINK, while the dips show when whales transferred Chainlink tokens out. A comparison of the spikes and dips shows Whale inflow was relatively larger than outflow, indicating they may be accumulating for a potential price breakout.
Data from Coingecko shows the trading volume is slightly up by 4% and relatively stable, with occasional spikes during both upward and downward movements. A significant increase in volume would be needed to confirm a breakout from the falling wedge pattern. If the volume fails to increase, the Chainlink price bullish thesis may be invalidated, resulting in a break lower.
Frequently Asked Questions (FAQs)
LINK is trending downward within a falling wedge pattern. This pattern typically signals a potential bullish reversal, but the price is currently below both the 50-day and 200-day exponential moving averages, indicating bearish momentum.
The Federal Reserve’s decision to keep interest rates unchanged contributed to a market-wide dip, including a 3.9% drop in Chainlink’s price over the past 24 hours.
Data shows that Chainlink whales have been accumulating tokens for the past two months, with larger inflows compared to outflows. This accumulation might indicate preparation for a potential price breakout.
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Evans Karanja
Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video gaming. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes that blockchain will revolutionize many industries in the years to come. When he is not writing, you can find him playing video games or chasing waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Chainlink Price
Chainlink Price Bearish Pattern Holds Despite Market Recovery—What’s Next?
Published
1 month agoon
August 20, 2024By
adminChainlink price showed some strength in the past 24 hours as the entire market started to rise. However, technical analysis suggests the asset is still stuck in a broader bearish pattern. The price of Chainlink increased by 3.6% in the last 24 hours, and the price was traded at $10.50. The question remains whether the current general bullish market sentiment will be enough to turn the tide for Chainlink.
Can Traders Sustain Chainlink Price Up?
The disparity between Chainlink price and on-chain metrics is concerning. While a deep analysis of LINK open interest (OI) and price relationship reveals bullish sentiment among traders, on-chain metrics speak a different story—one that is bearish.
The Coinglass Crypto Derivatives Visualizer shows that LINK OI increased by 0.91% over the last 24 hours, and its price spiked by 3.88% in the same duration. When price and OI both rise, it signals that traders are opening Long positions, which is bullish for the asset’s price.
However, a look at Chainlink’s real volume on Messari Research reveals the network is struggling. LINK on-chain volume hit a monthly low of $46.1 million, with an occasional anomaly spike on August 5, when the entire crypto market crashed.
This suggests that while both futures and spot traders are sustaining the price up, little is happening on-chain in terms of transactional operations. While this can be explained as Chainlink cornering institutional clients, the steady decline of on-chain volume is still worrying.
LINK Price Analysis: Is a 47% Crash Avoidable?
Chainlink price prediction shows the asset is in a bearish continuation pattern, known as a Bear Pennant. This indicates that LINK may continue its downtrend after a period of consolidation.
If the price follows through with the Bear Pennant pattern, LINK will likely find support around the $10.49 level, but a break below this could push the price toward the next support near $9.00. Below that, a long-term support target could be set around $5.50, based on the flagpole’s projected downward height. This represents a 47% drop from the current price.
All the exponential moving averages (EMAs) are sloping and expanding downward, confirming the bearish sentiment. Chainlink price is also trading below all of them, reinforcing the downtrend.
The Stochastic RSI is currently in the overbought region, indicating that the asset might be due for a short-term pullback or continuation of the downtrend. The %K (RSI line) and %D (Signal line) are converging, suggesting a potential bearish crossover.
If the LINK price breaks above $10.85, this could invalidate the Bear Pennant and bearish thesis. LINK would test the next major resistance at $12.04 and finally at $14.50
Frequently Asked Questions (FAQs)
The technical analysis suggests that Chainlink is stuck in a bearish continuation pattern, specifically a Bear Pennant, indicating a potential further decline.
On-chain volume for Chainlink has hit a monthly low of $46.1 million, with little transactional activity, which is concerning despite the price surge.
The exponential moving averages (EMAs) are sloping downward, and the Stochastic RSI is in the overbought region, suggesting the possibility of a continued downtrend.
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Evans Karanja
Evans Karanja is a content writer and scriptwriter with a focus on crypto, blockchain, and video gaming. He has worked with various startups in the past, helping them create engaging and high-quality content that captures the essence of their brand. Evans is also an avid crypto trader and investor, and he believes that blockchain will revolutionize many industries in the years to come. When he is not writing, you can find him playing video games or chasing waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source link
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