Chainlink Price Forecast: LINK eyes 10% drop as massive resistance barriers develop
- Chainlink price has undone yesterday’s crash but faces stiff supply zones ahead.
- LINK price could drop 10% if the buyers fail to slice through the immediate area of resistance, extending from $41.27 to $42.11.
- A decisive breach of the supply zone’s upper boundary at $44.47 will kick start a new uptrend.
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Chainlink price faces immense bearish momentum from previous swing highs and could buckle under this pressure if bulls fail to rescue it.
Chainlink price finds itself amid uphill battle
Chainlink price slid nearly 27% as the entire cryptocurrency market crashed. However, LINK buyers show extreme resilience as they have resurfaced to pre-crash levels. Now, the bullish momentum will be tested by the multiple lower highs formed since hitting a new all-time high at $44.48.
A rejection from the immediate supply zone extends from $41.27 to $42.11 will be the test of sellers’ strength. If buyers fail to rescue, the bearish fate will be sealed. Under such conditions, investors can expect Chainlink price to shatter the 50 Simple Moving Average (SMA) at $37.61 and slide to $36.64 on the 4-hour chart. This ordeal would indicate a 10% depreciation in LINK’s market value.
If the ask orders keep piling up, the oracle token will slide toward the 100 SMA at $34.85, which coincides with the upper trend line of the demand zone and the Momentum Reversal Indicator’s (MRI) State Trend Support.
LINK/USDT 4-hour chart
However, if the immediate supply zone is breached and the upswing move continues, it will prevent the formation of a lower high. In this situation, if bulls manage to produce a close above $43.80 convincingly, it would indicate a new higher high.
These events could signal the sidelined investors to jump on the LINK bandwagon. Hence, a potential spike in bullish pressure could target $44.44, the recent all-time high.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
