Chainlink (LINK) is currently facing a bearish trend, struggling to benefit from positive news. Even Swift's experimentation with Chainlink did not boost LINK's price significantly. The short-term support zone has collapsed, indicating further losses. It is trading at around $5.91 with potential support at $5.7 and $5. Despite bearish sentiment, Chainlink whales are accumulating, which could generate positive sentiment but may not break the downward trend.
Our analysis of the situation
Chainlink (LINK), the cryptocurrency known for its decentralized oracle network, has found itself tangled in a challenging period as it grapples with a persistent bearish trend. Despite promising developments in the crypto space, LINK's price has been on a downward trajectory, failing to leverage favorable news to its advantage.
In a surprising turn of events, Swift's experimentation with Chainlink, which created quite a buzz in the crypto community, did not provide the expected boost to LINK's price. Swift, the interbank messaging giant, conducted trials involving Chainlink, but rather than fueling LINK's ascent to new heights, it primarily generated increased social volume and sentiment among traders.
Taking a closer look at the price charts, it becomes evident that LINK was unable to hold onto a short-term support zone established by bullish investors just last week. The weekend witnessed a decline in prices and a surge in bearish pressure, eroding the previous support.
On the 4-hour chart, a bearish order block looms over the $6.2 zone, marked in red. Although Chainlink prices briefly surged past this level on September 7 and even retested it as support, the bulls struggled to maintain momentum. Ultimately, persistent sell pressure over the past few weeks pushed LINK's value below the critical $6.2 mark.
As of now, Chainlink is trading at approximately $5.91, signaling a 0.6% decline in the last 24 hours and a 1.2% dip over the past week. Both the price action and technical indicators align with the possibility of LINK facing further losses in the near future.
Looking ahead, the next significant support levels to watch are at $5.7 and $5, as indicated by higher timeframe price charts. It is increasingly likely that LINK may experience a drop to these levels in the coming days and weeks.
Nevertheless, amidst the prevailing bearish sentiment, a separate report brings attention to a noteworthy development - Chainlink whales. These whales, holding between 10,000 and 1,000,000 Chainlink tokens, have taken advantage of the recent dip in the asset's price, anticipating a future recovery in LINK's value.
While such whale accumulation generally generates positive sentiment among traders and fuels demand for LINK across various exchanges, it remains to be seen whether these bullish catalysts can set LINK free from its opposing downward trend, as social metrics continue to overshadow price performance in the Chainlink ecosystem.
Investing in cryptocurrencies always carries risk, and it is important to exercise caution. As the market continues to evolve, it is vital to stay informed and make well-informed investment decisions.
Feature image from Broken Chain Photography.
(Note: The content of this blog post is for informational purposes only and should not be considered as investment advice. Investing involves risk, and individuals should conduct their own research and seek professional advice before making any investment decisions.)
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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Please, behave!