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Chainlink price faces minor sell-off before resuming uptrend

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  • Chainlink price is witnessing its uptrend retreat following a technical signal that indicates the token has reached its local top.
  • LINK is headed lower to retest critical support levels as the bears target $28.61 next.
  • The token may fall toward the lower boundary of the parallel channel as the bulls catch their breath. 

Chainlink price faced stiff resistance at $31.26 as it reached the topside trend line of the prevailing chart pattern and is headed lower as the bulls lose strength. LINK could be headed for a minor sell-off as a critical technical level suggests the token has reached its local top.

Chainlink price dips after facing stiff hurdle

Chainlink price is sliding lower after it tagged the upper boundary of the ascending parallel channel on the 12-hour chart. The Momentum Reversal Indicator (MRI) flashed a top signal at this critical point, suggesting that LINK has just recorded its local top, prompting a sharp reversal.

Although the prevailing chart pattern gives the impression that Chainlink price is headed higher, LINK may need to retest crucial levels of support before resuming its uptrend. The first line of defense for the token is at the 50% Fibonacci retracement level at $28.61. 

Additional support may emerge at the middle boundary of the parallel channel at $28.26 before Chainlink price drops toward the 21 twelve-hour Simple Moving Average (SMA) at $27.66. A spike in selling pressure may see LINK fall toward the following foothold at $26.76, where the 50 and 100 twelve-hour SMAs and 38.2% Fibonacci retracement levels converge. 

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LINKUSDT

LINK/USDT 12-hour chart

Adding credence to the strength of the aforementioned line of defense is IntotheBlock’s In/Out of the Money Around Price model that indicates that the largest cluster of support of 33,330 addresses purchased 43.53 million LINK at $26.99.

LINK IOMAP

LINK IOMAP

However, should Chainlink price see a surge in sell orders, LINK could slide even further, tagging the 200 twelve-hour SMA, which coincides with the lower boundary of the governing technical pattern at $25.11.

On the flip side, if buying pressure increases, LINK would still need to conquer its first hurdle at the 61.8% Fibonacci retracement level at $30.46 before aiming higher toward the upper boundary of the parallel channel at $31.28, where the MRI presents a resistance line. If the bulls manage to slice above the aforementioned obstacle, Chainlink price could target $33.09 next, at the 78.6% Fibonacci retracement level, to set a higher high. 

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Chainlink

Chainlink Price Analysis: LINK tests previous low at $23, more downside to follow?

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  • Chainlink price analysis is bearish.
  • LINK/USD retraced to $25 yesterday.
  • The previous low at $23 is currently tested again.

Chainlink price analysis is bearish today as we expect another lower low to be set past the current support at $23 as the overall bearish pressure is still strong. Next support for LINK/USD is seen at $22 and likely will be reached over the next 24 hours.

Chainlink Price Analysis: LINK tests previous low at $23, more downside to follow? 1
Cryptocurrency heat map. Source: Coin360

The cryptocurrency market traded in the red over the last 24 hours. Bitcoin lost 0.47 percent, while Ethereum 0.54 percent. Meanwhile, Terra (LUNA) still holds in the green, with a gain of 5.6 percent.

Chainlink price movement in the last 24 hours: Chainlink recovers to $25, continues moving lower

LINK/USD traded in a range of $23.23 – $24.77, indicating a moderate amount of volatility over the last 24 hours. Trading volume has declined by 29.63 percent, totaling $689 million, while the total market cap trades around $11 billion, ranking the coin in  20th place overall.

LINK/USD 4-hour chart: LINK set to drop further?

On the 4-hour chart, we can see the Chasinlink price returning back to the $23 previous low this morning, likely leading to further downside later today.

Chainlink Price Analysis: LINK tests previous low at $23, more downside to follow?
LINK/USD 4-hour chart. Source: TradingView

Chainlink price action has continued to move lower this week. From the previous major swing high at $38, which was set on the 10the of November, LINK/USD has already retraced around 40 percent to the $23 mark.

Yesterday, we saw LINK recover some of the loss and move to retest previous support at $25 as resistance. After some consolidation, bearish momentum slowly returned by the end of the day, leading to more downside overnight.

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The $23 mark was reached around midnight, with small consolidation seen since bears are not yet ready to break lower. However, the Chainlink price should continue lower later today as the overall momentum is still very bearish. 

Chainlink Price Analysis: Conclusion 

Chainlink price analysis is bearish today as we expect further drop lower after bearish momentum saw return this morning. Likely, LINK/USD will see a break lower by the end of the day, with the next support at $22.

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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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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