- Chainlink price is trading within the lower segment of the ascending channel, thinly holding above $16.86.
- LINK could drop 25% to $13.08 if markets show weakness.
- A break and close above $20.70 would invalidate the bearish thesis.
Chainlink (LINK) price has consolidated within a range for the past two months amid a prolonged altcoin lull as Bitcoin (BTC) price bullish momentum stalled. With reducing trading volumes, volatility increased, causing LINK price to fluctuate.
Also Read: Chainlink price could rise 45% after sustained support-resistance flips as LINK sentiment changes
Chainlink price calculates a 25% breakdown
Chainlink price is likely to fall 25% to provide another buying opportunity at $16.86 as the Bitcoin price remains below $69,000 meaning the upside potential remains in the balance. With this level of uncertainty, altcoins could still drop, with Chainlink price eyeing a breakdown of the $16.86 support.
The Relative Strength Index (RSI) is dropping, moving below the 50 mean line and accentuated by the Awesome Oscillator (AO) indicator, which is in negative territory. With these pointing to a growing bearish sentiment, Chainlink price could make a 25% drop to $13.08.
In a dire case where the aforementioned level fails to hold as support, the LINK price could descend for a sweep of the liquidity resting below $13.08 before a potential move north.
LINK/USDT 1-day chart
On the other hand, a recovery that sets LINK price above $18.32, effectively meaning that $16.86 holds as support, could encourage more buy orders. A flip of the midline of the channel into support at $20.70 could precipitate a full-swing recovery rally, with the Chainlink price likely to make a run-up to the $28.71 target objective.
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.
Recommended Content
Editors’ Picks
Base attracts Lion’s share of Ethereum deposits among Layer 2 chains, beats Optimism in TVL
Base, Coinbase’s Ethereum Layer 2 chain, has noted a spike in inflows to its blockchain this week. Nearly $20 million in Ether flowed into Base since Monday, nearly two times that of Arbitrum and five times as much as Optimism, its competitors in the scaling ecosystem.
SEC vs. Ripple lawsuit sees redacted filing go public, XRP dips to $0.51
Ripple lawsuit develops further as redacted version of SEC filing goes public. Ripple, SEC and related parties will file motions to seal material from the remedies-related filings by May 13.
FET suffers 2% decline as whales deposit Fetch.AI tokens to exchanges
Fetch.AI (FET) token will be the reserve currency of the Superintelligence Alliance (ASI), a merge of three Artificial Intelligence (AI) projects: Fetch.AI, Ocean protocol and SingularityNET.
Ethereum resume sideways move as Grayscale files to withdraw Ethereum futures ETF application with the SEC
Grayscale has withdrawn its 19b-4 application for an Ethereum futures ETF. SEC Chair Gensler says several crypto assets are securities as he waives off ETH classification question.
Bitcoin: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.