The price of Chainlink (LINK) has not fully responded to recent advancements despite its significant role in the decentralized finance (DeFi) sector. The latest partnership with Superstate, an asset management fund managing over $103 million, aims to bridge the gap between decentralized finance and traditional finance (TradFi). However, despite these promising strides, LINK’s value continues on a downward path with the looming threat of falling to $8.
Collaboration with Superstate Raises Doubts
On August 12, Chainlink announced its collaboration with Superstate, intending to incorporate Chainlink’s Price Feeds into Superstate’s tokenized treasury fund (USTB). This integration seeks to enable on-chain tracking of the fund’s net asset value. Yet, this development has garnered mixed reactions from the investor community. On-chain data points towards potential sell signals, indicating a lack of enthusiasm among the investors.
Data from IntoTheBlock reveals a negative net flow of large LINK investors, suggesting that significant amounts of LINK tokens are still exiting wallets, potentially for sales. Over the past week, large investor inflows have decreased by 84%, while outflows have seen a 67% drop. Furthermore, CryptoQuant data indicates a slight increase in Chainlink’s exchange inflows, pointing to possible sell-offs by some investors.
LINK’s Technical Analysis and Price Trends
In the last 24 hours, LINK’s price has decreased by 4.1%, reaching $10.19. Technical analysis illustrates that the altcoin’s price could face further declines. Currently, the price is trading under the 50-day EMA ($10.94) and the 200-day EMA ($12.72). The formation of a rising wedge, which typically signals a downtrend, suggests more downward movement is likely.
For LINK’s price, critical support and resistance levels include the 50-day EMA at $10.94 and the 200-day EMA at $12.72 as resistance points. The support levels are near the lower boundary of the rising wedge and around $8.00. The Relative Strength Index (RSI) stands at 46.56, which is below the neutral 50 mark, indicating further room for decline before reaching the oversold territory.
Implications of Current Trends
Key Takeaways for Investors:
- Integration with Superstate has not significantly bolstered investor confidence.
- Large investor flows indicate a potential selling trend.
- Technical indicators forecast further price declines for LINK.
- Critical support levels are around $8, with resistance at $10.94 and $12.72.
- RSI suggests more room for a downward trajectory.
In summary, while Chainlink’s collaboration with Superstate marks a noteworthy effort to blend DeFi with TradFi, it hasn’t stirred the market as anticipated. LINK’s price continues to face substantial bearish pressure, and technical indicators suggest this trend may continue in the near term.
