Chainlink 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.

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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.