Chainlink Price Prediction: Close to the bottom but not quite yet
- Chainlink's price has lost 25% of its market value since August.
- LINK has produced several lower highs on the Relative Strength Index after a considerable uptick in bearish volume.
- Invalidation of the bearish thesis is a breach above $7.54.
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If market conditions persist, the Chainlink price could challenge the liquidity levels established in September and August. Key levels have been defined.
Chainlink price has space to fall
Chainlink price auctions at $7.13 as the bears exercise their dominance on shorter time frames. The Oracle-Hybrid cryptocurrency token's market value has decreased by 25% since August. On September 29, a significant uptick in volume poured into the market as the bulls failed to rally through the $8.00 barrier for the third time in 3 weeks. As the LINK price declines in a stair-step fashion, the likeliness of attempting the fourth attempt through the crucial barrier seems sparse.
On October 10, a bearish death cross of the 8-day exponential and 21-day simple moving averages occurred, which paved the way for this week's ongoing decline. The Relative Strength Index has produced lower highs consecutively after falling into the oversold territory at the end of August.
If the technicals are correct, the bears are unlikely to relieve their short positions until the September lows are breached at $6.51. If the September lows do not provide support, a breach of the August lows at $6.19 will be imminent. Such a move would result in up to a 14% decline.
LINK/USDT 1-Day Chart
Still, there is a potential for the bulls to invalidate the bearish thesis. A breach above the collided indicators at $7.54 could enable the bulls to go for the fourth attempt at the $8.00 barrier, resulting in an 11% increase from the current Chainlink price.
In the following video, our analysts deep dive into the price action of Bitcoin, 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.
