Chainlink price hovers just above a historical barrier, but technicals suggest one more low could occur
- 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.
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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
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
