Chainlink Price Prediction: LINK bulls flee as broadening wedge pattern hints at a 50% drop


  • Chainlink price nears the end of an ascending broadening wedge pattern that forecasts a 50% drop.
  • Transactional data shows that $17.8 could be an inflection point.
  • If LINK price slices through this support, then a drop to $13 seems likely.

Chainlink price suffered a 26% crash due to the sell-frenzy witnessed on Monday’s trading session. A continuation of this selling pressure has caused LINK to drop an additional 17% in the last five hours.

Chainlink price hangs by a thread

Chainlink price has formed a series of higher highs and higher lows since January 17. By joining the pivot highs and lows using trendlines, an ascending broadening wedge forms. This setup is a reversal pattern when it forms after a bull rally and forecasts a 50% downswing to $13. 

The target is determined by adding the distance between the swing high and pivot low to the breakout point at $27.45.

LINK/USDT 1-day chart

LINK/USDT 1-day chart

Supporting this bearish outlook is the SuperTrend indicator's sell-signal seen as a result of today's drop.

Based on IntoTheBlock’s Global In/Out of the Money (GIOM), roughly 28,000 addresses have purchased nearly 42 million LINK at an average price of $27.45. Therefore, a one-day candlestick close below this level would kickstart a 35% crash to $17.8. GIOM cohorts show that 41,000 addresses hold 35 million LINK here and will withstand any short-term selling pressure.

However, a sell-off similar to the one seen on Monday’s trading session could breach this support. In such a case, the oracle token will drop to the next meaningful support barrier at $13, where 45,000 addresses hold about 55 million LINK.

Chainlink GIOM chart

Chainlink GIOM chart

Regardless of the market’s extreme bearish momentum, investors should note that interested market participants might consider the $17.8 as a place to “buy the dip.” Hence, the resulting buying activity could not only invalidate the bearish thesis but push the price towards resistance levels at $27.45 or $23.55.

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

VET builds colossal liftoff to new record highs

VeChain is nurturing an uptrend after the key technical breakout. Recovery has been gradual but consistent since support was established at $0.036. Several resistance levels have been pushed into the rearview as VET eyes new record highs.

More VeChain news

Here is how Bitcoin whales watching can help anticipate BTC price action

Bitcoin whales have for a long time been linked to price actions in the market. When these large volume holders buy more BTC to hold, prices tend to rally. On the other hand, an exodus of the whales culminates in appreciable price drops. 

More Bitcoin News

ZIL poised for quick 35% upswing

Zilliqa price expected an upswing as the ascending triangle pattern was breached on March 3. However, the breakout wasn’t backed by substantial buy volume, which has pushed ZIL back into the consolidation phase.

More Zilliqa News

EGLD sets the pace for massive move beyond $200

Elrond is finally breaking out after spending more than a week in consolidation within the confines of a key technical pattern. As investors rush in from the sideline, EGLD could achieve the set target and hit levels past $200.

More Elrond News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: BTC journey to $100,000 might be easier than expected

This past week has been extremely beneficial for Bitcoin which jumped by 30% since Monday 8. Several positive announcements, especially Tesla purchasing $1.5 billion worth of the digital asset propelled the flagship cryptocurrency to new highs.

Read the weekly forecast

BTC

ETH

XRP