- 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
$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.