Chainlink (LINK) price faces severe test at key support level
This analysis is an update to a previous analysis and identifies key areas of Chainlink support for traders and investors to watch.
In the last analysis published on June 10, 2024, LINK was trading at $16. At the time, BeInCrypto predicted a significant price drop, a prediction that has since been confirmed. Chainlink broke through the key support level at $15.6 and continued its decline to the key support level at $14.30.
LINK’s price fell below the 100 EMA and 200 EMA on the daily chart, which is a strong bearish signal. The price encountered resistance at these EMA levels, further reinforcing the downward trend. Additionally, the price has broken below the Ichimoku Cloud, showing increased downside volatility.
Key support levels to watch are $14.30 and $11.95, with the latter becoming the next major support level if $14.30 is breached. Resistance is found around $15.60, $16.00, and $16.65, with significant resistance at the 100 and 200 EMA levels. The RSI fell further, slipping from 43 to around 38, indicating continued bearish momentum.
A move above $14.30, a key support level identified in previous analysis, confirms the bearish outlook. It is extremely important to continue to monitor this support level, as failure to hold this support level could lead to a further decline towards $11.95.
The number of addresses holding unrealized losses has increased rapidly
June 2024 saw a significant rise in the number of addresses holding Chainlink (LINK) on the Ethereum blockchain and facing unrealized losses. The percentage of such addresses jumped significantly from 31.43% to 43.15%, indicating a growing bearish trend and stop-loss trends.
The increase in negative equity holdings reflects the negative sentiment among LINK holders, with nearly half currently experiencing unrealized losses. The largest single-day increase in these addresses occurred on June 11.
At the same time, the proportion of break-even addresses remained stable, from 5.07% to 5.81%
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