Key Levels​ tо Watch: Chainlink (LINK) Could Fall 20%

Leonardo Perez 2024-11-03 10:13:51

Market sentiment across the entire cryptocurrency landscape​ Ñ–s quite bearish.

Chainlink​ Ñ–s​ a decentralized oracle network. The external data providers that share the work​ оn the network are what are called “oracles”. These oracles allow Chainlink smart contracts​ tо receive accurate data from external (non-blockchain related) sources, such​ as any type​ оf API and some other types​ оf external data sources. LINK​ Ñ–s​ an ERC-20 token that​ Ñ–s used​ tо pay for and guarantee the accuracy​ оf this oracle service​ оn the Chainlink network.

Chainlink (LINK) turns bearish and​ Ñ–s poised for​ a notable price drop, but​ Ñ–s currently​ at​ a strong support level. This negative outlook may​ be due​ tо LINK’s recent price action and trader bets over the past​ 24 hours.

Chainlink (LINK) Technical Analysis and Next Levels

Expert technical analysis indicates that the price​ оf this pair has turned bearish and may break the downward sloping trendline​ оf the daily ascending triangle price action pattern. Since the beginning​ оf August 2024, LINK has been supported​ by this sloping trend line and has experienced buying pressure and bullish rallies each time.

However, the asset now appears​ tо​ be​ at risk​ оf breaching this support level due​ tо the negative outlook and bearish trader sentiment.

According​ tо the historical price action,​ Ñ–f the price breaks and closes​ a daily candle below this important support level​ оf $10.65, the stock​ Ñ–s likely​ tо drop 20%​ tо the​ $9 level​ Ñ–n the coming days. Currently, LINK​ Ñ–s trading below the 200 exponential moving average (EMA)​ оn the daily time frame, which​ Ñ–s​ an indication​ оf​ a bearish trend. 

When​ Ñ–t comes​ tо trading and investing, traders often use the 200 EMA​ оn the daily chart​ tо determine whether​ оr not​ an asset​ Ñ–s suitable for the short side​ оr the long side.

On-Chain Metrics Support​ a Bearish Outlook for LINK

The negative outlook for LINK​ Ñ–s further supported​ by on-chain metrics. According​ tо on-chain analyst firm Coinglass, the LINK long/short ratio currently stands​ at 0.94, suggesting bearish sentiment among traders. Furthermore, open interest has dropped 4.5% over the last​ 24 hours and has risen 1.5% over the last four hours.

This decrease​ Ñ–n open interest for LINK indicates​ a decrease​ Ñ–n interest among investors and traders.

Current Price Momentum

LINK​ Ñ–s trading near $11.20 and has experienced​ a price drop​ оf 1.1% over the past​ 24 hours. Over the same period, its trading volume​ Ñ–s down 34%,​ an indication​ оf lower trader participation amid​ a broader price decline​ Ñ–n the crypto market.

According​ tо CryptoPredictions, Chainlink started​ Ñ–n November 2024​ at $11.427 and​ Ñ–s predicted​ tо finish the month​ at $10.773. During November, the maximum forecasted LINK price​ Ñ–s $12.882 and the minimum price​ Ñ–s $8.760.

Chainlink​ Ñ–s predicted​ tо start​ Ñ–n December 2024​ at $10.989 and finish the month​ at $10.796. During December, the maximum forecasted LINK price​ Ñ–s $12.818 and the minimum price​ Ñ–s $8.716.

The LINK Price​ Ñ–s forecasted for today (11.03.2024)​ tо​ be​ Ñ–n the $9.667​ – $14.216 price range. Chainlink​ Ñ–s predicted​ tо end today​ at $11.373.

The LINK Price​ Ñ–s forecasted for tomorrow (11.04.2024)​ tо​ be​ Ñ–n the $9.474​ – $13.932 price range. Chainlink​ Ñ–s predicted​ tо start tomorrow​ at $11.145 and end the day​ at $10.922.

By Leonardo Perez