- Chainlink price has slipped past a crucial support level at $29.82, indicating a start to a steeper correction.
- LINK might provide trapped investors a chance to offload at the $27.61 resistance barrier before heading to $22.24.
- A daily close above $31.46 will invalidate the bearish thesis.
Chainlink price has seen a massive descent over the past week, and from the looks of it, the bearish regime has a higher probability of continuing. With the big crypto showing weakness, altcoins, including LINK, are likely correct to stable support levels.
Chainlink price prepares for more losses
Chainlink price pierced the 1-day supply zone, ranging from $36.70 to $44.76 on November 10, but failed. This development led to a 31% correction to where LINK currently trades, at $26.54. During this downswing, Chainlink price has not only sliced through the $31.46 support floor but also the 50% retracement level at $29.82.
Since the crypto market looks like it is crumbling under immense selling pressure, market participants can expect Chainlink price to continue going lower. However, investors can expect a relief bounce to retest the $27.61 or $29.82 resistance barriers. This move will allow the buyers to offload their holdings.
A failure to flip these hurdles into support levels will confirm the bearish thesis and trigger Chainlink price to crash 20% to $22.24. This downswing will indicate that LINK will shatter the range low at $23.26.
In some cases, the correction could extend to $21.02, indicating a 24% drop from $27.61.
LINK/USDT 6-hour chart
On the other hand, if Chainlink price produces a daily close above $29.82, it will hint that the buyers are trying for a comeback. However, a confirmation of this upswing and the invalidation of the bearish thesis will arrive after LINK produces a higher high above $31.46.
In this case, LINK could continue its ascent and retest the $35.06 resistance barrier.
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