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Chainlink price analysis: LINK rejected at $31, after a successful bullish episode

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  • Chainlink price analysis is bearish today.
  • Support for LINK/USD is present at $28.6.
  • The nearest resistance for LINK is found at $34.8.

The Chainlink price analysis is bearish today, as the LINK/USD got a rejection at $31.4 following a successful bullish swing. Selling pressure is high up to the $31 range, and LINK must get enough consolidation to push through this resistance for further rise. LINK is still trading below the level of the 7th September flash crash, and if it breaks above this current resistance level then, the next target will be $34.8 for LINK bulls.

Overall the LINK observed a good improvement in price during the past week when the price improved from $25 to as high as $31.4, which is a significant change for the crypto pair.

LINK/USD 1-day price chart: LINK steps down to $30

The 24-hour Chainlink price analysis shows the price has reduced from $31.4 to $30.3, as the LINK/USD pair is trading hands at the later value at the time of writing. However, due to a sharp increase in price yesterday, LINK still reports a gain in value by 2.06 percent over the past 24 hours, and a gain of more than 11 percent over the past week, due to the aggressively bullish trend for the entire week. The market cap also went up by 4.4 percent as the trading volume surged by 25.8 percent, providing a market dominance of 0.55 percent to the LINK/USD pair.

Chainlink price analysis: LINK rejected at $31, after a successful bullish episode 1
LINK/USD 1-day price chart. Source: TradingView

The volatility is again on the increase for LINK/USD as the Bollinger band took on to divergence with the upper band at the $30.2 mark, currently representing support for LINK as the price still trades above the upper limit of the indicator, and the lower band at $23.8, forming an average at $27.9.

The relative strength index (RSI) has fallen sharply today and is on a downwards slope at index 61. The indicator is showing an overwhelming selling activity going on in the market. However, the RSI is still neutral but hints at the current bearish situation.

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Chainlink price analysis: Recent developments and further technical indications

The 4-hour Chainlink price analysis shows that the LINK price has been falling consistently today, and the first four hours observed the major part of the decline. However, the fall has slowed down in the preceding hours, and less downside has been seen in the last few hours, as the price came near the support zone of $30.02.

Chainlink price analysis: LINK rejected at $31, after a successful bullish episode 2
LINK/USD 4-hours price chart. Source: TradingView

The volatility is also high on the 4-hour chart, but the Bollinger bands are on an upwards breakout, with the upper band at $31.6 and the lower band at $27.2. The price has also steeped below the moving average, which is found at the $30.4 mark, which is a bearish crossover. The RSI is again taking a horizontal curve after coming down to index 61, which shows the support factor coming into play.

Overall technical indicators are on the bullish side due to the past bullish week, and still, there are chances for recovery. Around 14 technical indicators support the bullish side, and only five technical indicators support the bearish side, out of a total of 26 technical indicators available, thus further authenticating the negative price movement in a bullish horizon.

Chainlink price analysis: Conclusion

The Chainlink price analysis suggests the crypto pair is correcting today after a successful bullish trend. The technical indicators still suggest a further bulls rally to be observed in the coming days, but for intraday traders, the price has come down, but a slight recovery is also not out of the question if the support of $30.02 persists.

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The how, when, why of Chainlink hitching a ride with Bitcoin, to get to $40

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Ever since 2018, Chainlink has shared quite a good bond with Bitcoin. Whenever the king coin pumped, so did LINK. Similarly, whenever BTC lost value, LINK followed in its footsteps.

Over the long term, having a strong correlation with Bitcoin is undeniably healthy. But, in the short term, especially during periods of downtrends, this factor has acted like a major spoilsport for LINK.

Bitcoin-Chainlink correlation || Source: CoinMetrics

Outlining its fading prospects

LINK witnessed quite a good rally in the period between 22 September to 10 November. In the aforementioned timeframe, the alt’s value witnessed a massive jump from $21 to $38.

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Nevertheless, as BTC started going south, LINK was forced to deviate from its uptrend. And in effect, the alt was back to square one, at the time of writing.

LINK/USDT || Source: TradingView

Over the years, Chainlink has already established itself in the space. It wouldn’t be wrong to claim that this network is gradually becoming the most preferred oracle-solution provider.

Previous articles have highlighted how HODLers passively benefited from Chainlink’s partnerships with smart contract developers. However, the same factor, hasn’t been able to do much this time around.

Consider this – Just a day back, Chainlink took Twitter to announce its recent integrations. The list included a host of projects – right from NFT market places to lending pools based on the Binance Smart Chain.

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Had it been a normal non-Black Friday, LINK’s price would have likely reacted positively to the aforementioned set of developments. However, Bitcoin’s choppiness didn’t allow LINK to relish and acknowledge the same.

Other x-factors

Well, most of LINK’s metrics have been in their finest shape of late. Yet, the token hasn’t been able to rally. It is a known fact that a major chunk of Chainlink’s supply is held by whales. Data from Glassnode pointed out that the percent of supply held by the top 1% addresses had witnessed a steep incline over the past week.

LINK supply held by top 1% addresses || Source: Glassnode

Now, whenever whales scooped up tokens, LINK’s price has more often than not, reacted positively. However, this time around, it just didn’t respond to the whale buying spree.

Additionally, the majority of LINK investors have steadily been clinging on to their respective tokens. The same was highlighted by the rising slopes of the mean coin age and the mean dollar invested age.

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Mean Coin Age, Mean Dollar Invested Age – LINK ||

Source: Santiment

Whenever these two indicators rise in conjunction, it usually implies the absence of sell-side pressure. Now, this is a healthy on given day and usually doesn’t trigger a price-dip. The current state of affairs, however, narrate a different tale.

Well, LINK’s depreciating value amidst the healthy state of its metrics indicate one thing – it desperately needs Bitcoin’s support to rally back from this point. In fact, $40 is definitely an attainable target for LINK in the near future.

Nevertheless, keeping the current state of the market in mind, it can be said that it will still take time for Bitcoin to recover from its dip. As a result, LINK’s anticipated rally might just procrastinate a little.

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Chainlink price needs to hold above $22 for LINK to avoid steep crash

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  • Chainlink price is under pressure from global markets entering risk-off mode, creating headwinds in cryptocurrencies.
  • LINK price already broke $24.55, and the monthly pivot at $23.50. 
  • Should market turmoil accelerate, expect a test of $21.62, and a break  lead to acceleration lower.

Chainlink (LINK) price has fallen following  global market turmoil as investor’s increasingly reach for safe-haven assets whilst dropping riskier holdings.. Following these headwinds, bulls have seen yesterday’s gains quickly reversed, and the downturn since the beginning of November gain additional confirmation. Expect a break of $21.62 to see an accelerated sell-off towards $15, accounting for 45% losses.

Chainlink price could form a falling knife as bulls flee the scene

Chainlink faces double support with the historical level at $24.55 and the monthly pivot at $23.25, which for now looks to be holding, or at least slowing down the selling pressure.Sentiment is backing the LINK price to fall further as sell-side volume accelerates and these support levels are now likely to be penetrated. Expect further downward pressure towards $21.62, the historical August 5 level which was also respected during September. 

LINK price may see some let up in the sell off from profit-taking along the way lower, eventually leading to a make-or-break moment when bears try to pierce $21.62. Whilst there may initially be a bounce off that level it will probably be followed by a break below, which would then see a massive acceleration as sidelined bears seek to jump on the descending bandwagon. The move could lead to an overall 30% devaluation..

LINK/USD daily chart

LINK/USD daily chart

$14.95 could provide an eventual bottom, but many bears will want to lock in some profit on the way down at around $17.00 and the S2 support level. At these levels bulls will have the opportunity to pick up Chainlink at a very attractive discount. Expect a reversal from this zone, and a surge to the upside as the buy-side volume overtakes sell-side action, withLINK price rising back up towards $21.62.

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Chainlink Price Analysis: LINK swiftly recovers back above $26, another lower high to be set today?

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  • Chainlink price analysis is bullish today.
  • LINK/USD set lower low above $25 yesterday.
  • Recovery above the previous low seen this morning.

Chainlink price analysis is bullish today as we expect further recovery after a slightly lower low set yesterday above the $25 mark. Therefore, LINK/USD should see more upside today, with the 28 mark as the next resistance.

Chainlink Price Analysis: LINK swiftly recovers back above $26, another lower high to be set today? 1
Cryptocurrency heat map. Source: Coin360

The market overall saw bullish momentum return over the last 24 hours as sellers are exhausted. Bitcoin gained 2.72 percent, while Ethereum 2.18 percent. Meanwhile, Avalanche (AVAX) is among the top performers, with a gain of over 11 percent.

Chainlink price movement in the last 24 hours: Chainlink sets lower low at $25, starts the day bullish

LINK/USD traded in a range of $25.20 – $26.79, indicating a moderate amount of volatility over the last 24 hours. Trading volume has increased by 20 percent, totaling $949.7 billion, while the total market cap trades around $12.49 billion, ranking the coin in 19th place overall.

LINK/USD 4-hour chart: LINK to set lower high today?

On the 4-hour chart, we can see the Chainlink price rapidly retracing yesterdays loss as another lower high should be set today.

Chainlink Price Analysis: LINK recovers back above $26, another lower high to be set today?
LINK/USD 4-hour chart. Source: TradingView

Chainlink price has seen strong bearish momentum since a new major swing high was set at $38 on the 10th of November. After an initial drop to $33, a consolidation followed until the middle of the month, when another spike lower was seen.

Support was initially reached at $28, with further push lower following on the 18th of November, taking LINK/USD to $26. After a slight recovery over the weekend, sellers took over again on Monday, slowly pushing the market lower until the $26 mark was tested again yesterday.

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The Chainlink price could not hold for long, breaking below the support and establishing a new lower low above $25. Since then, LINK/USD has seen a quick recovery above $26, with further upside likely to be tested later today.

Chainlink Price Analysis: Conclusion 

Chainlink price analysis is bearish today as we currently see strong retracement looking to set another higher low. Therefore, LINK/USD should see further upside later today as the market has not yet peaked.

While waiting for Chainlink to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.

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