Things are getting pretty negative in the crypto market, as more and more Bitcoin is deposited on exchanges. LINK is one of the most affected by the current scenario, and now seems to be on the verge of losing a very important level of support. If you want to find out where Chainlink is headed, check out this technical analysis.
At the time of this writing LINK is trading at $14.59, accumulating a loss of 5.63% in the last 24 hours and 20% in the last 7 days.
The fall is being the consequence of a widespread down tide in the ecosystem, a product of investors ‘ low short-term confidence in Bitcoin.
Now Chainlink needs to recover soon, as it could be generating a more pessimistic scenario if it does not.
Technical analysis of Chainlink: Weekly chart
In the weekly chart LINK vs USDT we see how the week that just closed, developed with an important bearish intention, seriously jeopardizing the support at $15.
Right now we seem to be seeing the development of a short-term bearish momentum, and it still has a way to go.
The low presence of buyers above the level of support, tells us that the losses could spread a little more.
We still notice a clear dominant bullish direction, which led the price to a huge all-time high of $53.
The fall from that maximum accumulates until the moment a loss of 72.55%, without a doubt quite relevant.
But, a large part of those who bought in 2020 between $3 and $5, may stand firm defending the price, because they are in profits that hover around 300%.
At the moment the odds are on the side of a continuation of the fall. Losing the $ 15 seems to clear the ground until a next weekly support at $11.57.
To think of purchases, the resistance at $19.24 must be overcome, which will invalidate the succession of ever-lower lows and highs seen on the weekly chart.
Going to a smaller timeframe, we see the short-term bearish direction more evident.
Just today it looks like we’ll finally see that support at the $15 being traversed. Doing a technical analysis of the daily chart of Chainlink, it is likely a sales deployment up to a minimum of $13.55.
We could still see a false break, in case buyers come to exert pressure in the next few hours. However, this is not the most likely scenario at the moment.
If you want to take advantage of low prices to accumulate, but looking for some confirmation of strength, you can look at the daily chart to expect a continuous formation of increasingly high lows and highs, which would tell us about an uptrend in the short term.
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