Chainlink Price Prediction: LINK eyes $7 following rejection from critical resistance level

  • LINK has plummeted by 51.60% in a little over 45 days.
  • Since September 10, the number of whales holding 1M to 10M LINK tokens has fallen from 54 to 49.

After running out of momentum near the $10.75 resistance line and the 100-day moving average, LINK has been sludging downward for the last five days. Technical analysis tells us that we are about to see a price correction to $7.

LINK/USD daily chart

LINKUSD daily chart

After charting an all-time high of $16.83 on August 16, 2020, the decentralized oracle has dropped to $9.60, as of press time. That’s a 51.60% price in a little over 45 days. This downward fall was triggered by the evening star pattern, which prompted the price to fall in a parallel channel formation. The price has faced repeated rejection at the parallel channel's upper bound and the SMA 100 in the last five days.

These repeated rejections should give the bears enough confidence to take the price down to the SMA 200 curve, which is currently hovering around the $7 region.

LINK/USD 4-hour chart

LINKUSD 4-hour chart

The 4-hour LINK/USD candlesticks have charted a bearish three line strike pattern and dropped below the SMA 50 and SMA 100 curves. While the latter two have charted a bullish cross pattern, it looks like the sellers have wholly negated it. The MACD also shows increasing bearish momentum, which shows that sellers have complete control of the market in this time frame.



IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model indicates that there is a strong resistance wall at $10.60, where 3,430 addresses have previously bought 29.61 million LINK tokens. On the downside, there is a lack of significant support levels, so LINK is presently vulnerable to intense selling pressure.

LINK on-chain metrics

#1 LINK whales


Santiment’s holders distribution chart reveals that there has been a drop in the investors holding 1M-10M LINK tokens. Since September 10, the number of these holders has fallen from 54 to 49. While that may not sound like a large number, one must keep in mind these are holders with at least a million LINK tokens (aka whales). If they continue to dump their holdings, there will be a major negative impact on the price.

#2 LINK new addresses


IntoTheBlock’s “Daily Active Addresses” model shows that the number of new addresses created on the Chainlink network topped-out on August 13 at a high of ~10,000 addresses per day, calculated on a 3-month trailing average. Since then, the decentralized oracle’s network growth has declined by new active addresses per day. Only 1,760 new addresses were created at press time based on this trailing average, which can be considered a major bearish sign for LINK.

Not all doom and gloom

While the signs presently do not look good, Santiment does have some good news for LINK holders.


Market Value To Realized Value (MVRV) shows the average profit or loss of all LINK holders based on the price when each token last moved. 

The analytics firm tweeted: 

Over the past 30 days, and our MVRV metric is indicating that a buy-low opportunity has arisen. While the average $BTC and $ETH trader is break-even in this time, $LINK trader returns are at -20% in this time span. Sentiment is low, FUD is rampant, and a rebound is more likely than not under these conditions. This metric is one of our top leading indicators.

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

Ripple Price Prediction: XRP ready to make a comeback as bulls target $0.7

XRP, like the rest of the market, had a significant crash from its peak of $0.78 down to $0.456. The digital asset is currently trying to bounce back up, trading around $0.537, awaiting a clear breakout or breakdown from an ascending triangle on the 30-minute chart.

More Ripple News

Facebook plans to launch a limited version of its cryptocurrency Libra in 2021

The social media giant Facebook may launch its contradictory digital coin Libra as early as in January 2021, the Financial Times reports, citing knowledgeable sources.

More Libra News

Bitcoin show signs of a dead cat bounce while investors hope for prompt recovery

Bitcoin is hovering around $17,000 after a heart-breaking sell-off to $16,200 on Thursday. However, the industry experts warn that the downside correction has just started. 

More Bitcoin News

German finance minister calls for quick decisions on ECB's digital currency

Germany's finance minister, Olaf Scholz, said that Europeans should work very hard to come up with a solution for digital payments, as there is a massive demand for digital money from consumers and businesses.

More Cryptocurrencies News


Gold Weekly Forecast: XAU/USD tumbles to multi-month lows on risk flows, technical selloff

Bitcoin has lived through a roller-coaster week. The pioneer digital currency hit another multi-year high of $19,500 and got really close to the all-time high on Wednesday. 

Read the weekly forecast