Chainlink (LINK) has seen its price spiral downwards since peaking in March. Despite a brief 7% rise during the 2024 Bitcoin Conference, LINK shed all gains within three days. In the past 24 hours, the cryptocurrency’s value slipped by 3.9% to $12.82, largely due to market swings following the Federal Open Market Committee’s (FOMC) decision to keep interest rates steady. Analysts caution that LINK needs a cooldown phase before it can aim for the anticipated $16 level.
Chainlink Technical Analysis
Currently, LINK is trading within a descending channel and remains below its 50-day and 200-day exponential moving averages (EMAs), hinting at bearish momentum. However, descending channels often precede bullish reversals. Key support levels are identified at $11.4 and $10, which align with the channel’s lower boundaries and serve as historically significant support points. Resistance points are at $13.92 (50-day EMA), $14.78 (200-day EMA), and $16.00.
June 28 marked the formation of a death cross on LINK’s daily chart, suggesting a potential downtrend. The RSI indicator, at a neutral 48.45, slightly trends downward, indicating ongoing short-term bearish pressure. Meanwhile, the CMF indicator at 0.07 points to a positive money flow but limited buying pressure.
Price Prediction for Chainlink
Should LINK fall below $10 and fail to reclaim this level, it would undermine the bullish outlook within the descending channel, with the price likely finding support around $8.11. IntoTheBlock data reveals that Chainlink whales have been accumulating heavily over the past two months, with whale inflows surpassing outflows, indicating a potential price increase. According to Coingecko, trading volume for LINK has risen slightly by 4% and remained stable. A substantial increase in trading volume is required to confirm an exit from the descending channel; absent this, LINK is expected to continue its downtrend.
Insights on Chainlink’s Market Activity
– Whale activity: Significant accumulation by major holders suggests potential price increase.
– Key support levels: $11.4 and $10 are crucial to watch.
– Resistance levels: $13.92, $14.78, and $16.00 are pivotal for upward movement.
– Indicators: Neutral RSI and positive yet limited CMF indicate mixed sentiment.
In summary, while Chainlink is currently experiencing downward pressure, whale activity and key support levels could offer a bullish outlook if trading volume increases substantially. Without such a volume boost, the downtrend may persist.
