- The number of daily active addresses on ChainLink has been steadily decreasing.
- LINK has been failing to get past the $12.78 resistance level.
- One analyst predicts the price to fall to $10 levels.
ChainLink has been on a massive downtrend since the mid-August $20 rejection. Currently, the price has been failing to get past the $12.78 resistance level. Many believe that LINK/USD’s future price performance is clearly dependent on whether it gets past this level or not. Unfortunately, it looks like we have some bad news for them.
Firstly, the number of daily active addresses on ChainLink has been steadily decreasing. This is always a bearish sign.
Now, let’s look up some technical analysis.
LINK/USD daily chart
LINK/USD has dropped from $12.77 to $11.97 over the last two days as the MACD shows sustained bearish market momentum. The SMA 50 and SMA 20 are about to cross over each other to form a bearish cross pattern.
So, if a further bearish movement is indeed expected, then how much further can it fall? According to one trader, he is expecting the rejection to spark a massive sell-off over the next few days, which can see LINK fall to $10-levels.
LINK/USD monthly chart
The LINK/USD monthly chart shows how drastic this bearish movement is. The bears are correcting the price following four straight bullish months. The price has dropped from $15.73 to $11.97 over the month.
LINK/USD 4-hour chart
The 4-hour chart shows that the price has faced rejection at both the SMA 50 and SMA 20 curves. The former curve has crossed over the later to chart a bearish cross pattern. The relative strength index (RSI) is trending in the neutral zone, so further bearish correction is expected.
LINK/USD hourly chart
The hourly LINK/USD chart is trying to break above the downward trending line. The buyers bounced up from the $11.96 support line and are looking to break above the trending line and touch the $12.12 resistance level. The MACD shows decreasing bullish momentum.
LINK/USD IOMAP
While the analysts are predicting a drop to the $10-level, the IOMAP shows us that the price can drop to $11.64 before it encounters healthy support. On the other hand, the chances of any upward movement look next to none since the price faces a stack of strong resistance levels.
Quotes from Twitter-verse
$LINK / USD
— Cactus (@TheCryptoCactus) September 11, 2020
Honestly not really looking to great right now, currently not looking like the best time to take a long position at resistance but if PA can flip $13.2 I would be long...
Maybe I should just listen to the marines and degen long? pic.twitter.com/sbhvGjwG75
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Ethereum continues hinting at rally following reduced long liquidations
Ethereum has continued showing signs of a potential rally on Tuesday as most coins in the crypto market are also posting gains. This comes amid speculation of a potential decline following FTX ETH sales and normalizing ETH risk reversals.
HBAR price jumps 75% as BlackRock tokenizes Money Market Fund on Hedera
Archax, Ownera and The HBAR Foundation have enabled the first tokenization of BlackRock’s money market fund (MMF) on Hedera. Last year Hedera Council member abrdn’s successfully tokenized its MMFs on Hedera.
Bitcoin price holds above $66K as Morgan Stanley files prospectus to add BTC ETF exposure in two of its funds
Bitcoin (BTC) price remains range-bound, holding above the $63,000 level, while its upside is capped below $68,000, going against or delaying the assumption that the fourth halving would be a 'sell-the-news' outcome.
Crypto community reacts as BRICS considers launching stablecoin for international trade settlement
BRICS is intensifying efforts to reduce reliance on the US dollar after plans for a stablecoin effort surfaced online on Tuesday. Most people expect the stablecoin to be backed by gold, considering BRICS nations have been accumulating large holdings of the commodity.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?