- Chainlink price has lost 25% of its market value since rallying 67% this summer.
- LINK price consolidated under relatively sparse volume, hinting that bulls want a better deal.
- Invalidation of the bearish thesis is a closing candle above $9.65.
Chainlink price has yet to decide if a market bottom is in. A sweep-the-lows event is still on the table.
Chainlink price shows bulls lack interest
Chainlink price auctions near a significant ascending trend channel as retail traders place their bets on the next directional move. Since July, the LINK price has rallied 67%, breaching impulsively through the historical trend line, influencing the Chainlink price since 2020. Following the impressive rally, Chainlink price witnessed a 25% decline amidst what had first appeared to be a profit-taking consolidation mid-August.
Chainlink price currently auctions at $7.16, just below the ascending historical barrier. The volume profile showed an uptick in transactions worth noting amidst the 25% decline and has since tapered while the price congests near the $7.00 price zone. Currently, the bulls are trying to reconquer the 8-day simple moving average. Placing an entry before the event occurs would be ill-advised; thus, this thesis remains bearish with a potential sweep-the-low event in the cards targeting $5.19.
LINK/USD 1-Day Chart
Invalidation of the additional 25% decline depends on $9..65 remaining unbreached. If the bulls can produce a daily closing candle above $9.65, they may be able to produce a rally targeting $13 in the short term, resulting in a 90% increase from the current Chainlink price.
In the following video, our analysts deep-dive into Chainlink's price action, analyzing key levels of interest in the market - FXStreet Team
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.