- Chainlink is at risk of dropping 50% of its value once a specific level breaks.
- LINK sees pressures mounting as overall investors back further away from Cryptocurrencies.
- Default of Celsius Network might not be the last, more defaults could trigger a crypto existential crisis, battering LINK price action.
Chainlink (LINK) is still moving in the same technical playbook setup marked up at the beginning of June. After over a month, bulls have not been able to move out of the bearish triangle and look even bleaker, as not even a test for the breakout was performed. With this bearish sentiment still dictating the price action, do not expect to see a recovery anytime soon, as more bearish pressures could start to weigh on $5.00 and trigger a falling knife towards $2.94, killing off 50% of its value from where LINK is quoting at the time of writing.
LINK set to slide from $6.00 to $3.00
Chainlink price lives to die another day as price action is still moving in an overall bearish triangle with the 55-day Simple Moving Average (SMA) and the tilted red descending trend line moving in tandem. With this double bearish belt keeping price action muted to the upside, bulls have not been in shape at all to put up a fight. It even needs to take us back to June to see a test on the trend line and 55-day SMA, which received a firm rejection.
LINK price thus lacks the firepower from bulls to break the chains of this bear market in cryptocurrencies. And that is not where the bad news stops. With global economic numbers deteriorating further, investors are further backing away from cryptocurrencies to let their hard-earned cash hibernate in a somewhat safe haven asset. Where crypto has long been proclaiming it is entirely independent of the world economy and it could only go one way, the truth seems to be the opposite. Reality now bites hard on crypto investors, setting up LINK for an exodus that could rapidly trigger a fall to $3.00 once that inflection point where investors had enough is reached.
LINK/USD Daily chart
The Relative Strength Index (RSI) has though some positive news. Normally, one would expect that the RSI would be trading in oversold constantly, but, instead, it has made it to the mid 50-level, showing that there are still market participants that believe and invest in Chainlink. Once global market sentiment stabilizes and bottoms out, investors could quickly return and jump in the price action when LINK can break the red descending trend line. A quick rally that could quickly reach $10 within the next few days would then unfold.
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
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. Investors can expect XRP to kickstart a massive rally.
Optimism price outlook with nearly $90 million worth of OP tokens flooding markets on Friday
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts
Bitcoin could clear $73,777 peak as BTC bulls resurface. Ethereum might fall 10% before next leg up as ETH RSI teases with sell signal. XRP could lose $0.6000 threshold as Ripple bulls fail to show up.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito price action shows a potential cup and handle formation. Based on theoretical measurement rules, a successful breakout could yield a 56% rally to $6.0. A breakdown of the $3.86 support level would create a lower low for JTO and invalidate the bullish thesis.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.