- Chainlink is down more than 20% since the start of the week.
- Several strong resistances are located just above the price.
- Next significant support for LINK is located around $23.
Chainlink suffered heavy losses at the start of the week and failed to shake off the bearish pressure. Following a recovery phase on Wednesday, the bearish momentum gathered strength, once again, and forced LINK to extend its weekly slide. As of writing, Chainlink was trading at $25.30, losing nearly 26% on a weekly basis.
Near-term outlook to remain bearish if LINK fails to reclaim $30
Despite the huge drop witnessed earlier in the week, the Relative Strength Index (RSI) on the daily chart holds near 40, suggesting that there is more room on the downside before LINK becomes technically oversold. The initial support is located at $2, the Fibonacci 50% retracement level of the rally seen during the first half of February. A daily close below that level is likely to open the door for additional losses toward $20 (psychological level, Fibonacci 61.8% retracement) and $19 (100-day SMA).
Resistances are located at $26 (Fibonacci 38.2% retracement ahead of $29 (Fibonacci 23.6% retracement) and $30 (psychological level, 20-day SMA).
LINK/USD one-day chart
IntoTheBlock's In/Out of the Money Around Price (IOMAP) model confirms that the next significant support area is located a little below $23 with more than 11K addresses purchasing nearly 8.7 million LINK around that price.
On the upside, several strong resistances seem to have formed between $26 and $28, suggesting that buyers are unlikely to show interest in Chainlink unless the price clears that area.
LINK IOMAP chart
Although Chainlik was able to pull away following Monday's unprecedented slump, the near-term technical outlook and on-chain metrics show that sellers remain in control of the price action. The next leg down could drag the price lower toward $20 and only a daily close above $30 could attract buyers.
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
Uniswap nears $3 billion in daily trading volume despite Wells notice and fee hike
Uniswap's (UNI) price witnessed a double-fold crash in the past week after it received a Wells notice from the SEC and later due to the general crypto market crash over the weekend. In the past week, UNI has decreased more than 38%.
Arbitrum Price Prediction: 10% losses likely for holders ahead of $107 million worth of cliff token unlocks
Token unlocks are considered bearish catalysts, particularly when recipients are likely to cash in for a quick profit. The event, which adds tokens to the project’s circulating supply without increasing demand, leaves an effective imbalance in favor of supply.
Ethereum recovers from dip as Hong Kong ETH ETF approval sparks whale buying spree
Ethereum's (ETH) price slightly improved on Monday after Hong Kong approved applications for a spot Bitcoin and Ethereum ETF. Whales have also been accumulating ETH after the market dip over the weekend.
Bitcoin price delays pre-halving rally as US and China battle for BTC supremacy ahead of halving
Bitcoin has failed to showcase an enticing pre-halving rally. As the event remains less than a week out, traders and investors remain at the edge of their seats, with thoughts on whether the impact of the fourth cycle will be different than what has been seen before.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.