[Chainlink (LINK) price faces downward pressure]
Concerns about the future direction of LINK price have deepened, with a death cross on the EMA line on April 1 signaling a downtrend.
Chainlink’s number of daily active addresses shows an important change in market dynamics. In the first three weeks of March, daily active addresses fluctuated between 4,700 and 4,900. Active addresses began to drop significantly starting on March 20, falling to 3,826 on March 25.
In early April, the number of active addresses fell again, indicating that interest in Chainlink may be waning, which is negative for the price.
Lower activity could be interpreted by the market as less confidence in the value of the asset, which could lead to lower prices.
Furthermore, Chainlink’s ADX surged from 9.6 on March 31 to 30.2 on April 2, indicating a significant change in market sentiment and momentum. ADX values above 25 indicate a strong trend, and the current reading of 30.2 suggests strong downside momentum.
A death cross on the 4-hour chart on April 1 signaled a downtrend. A death cross, where the short-term EMA is below the long-term EMA, usually signals a bull market turning into a bear market. When the gap between the EMA lines widens, it indicates a strong seller's market and may push prices lower.
If the $17.3 support fails, Chainlink could drop to $16.2. Conversely, if the price rebounds above the resistance, it could rise to the $20.7 or even $22 range.
