LINK has dropped significantly, showing repeated “death crosses” and multiple double-bottom patterns. The altcoin’s RSI and Ichimoku Cloud indicators confirmed that bears were in control.
Over the past two weeks, Chainlink (LINK) has fallen by 25%, leading to concerns about its future in both the short term and long term.
Analysis of LINK’s Trading Chart Over the Past Month
We examined LINK’s trading chart for the past month to identify the prominent bullish indicator known as the double-bottom pattern.
As shown on the chart below, LINK has experienced multiple double-bottoms, indicating three instances of potential bullish reversal. However, the price frequently staying near or below the lower Bollinger Band suggests significant bearish pressure, although it also hints at possible oversold conditions that might attract buyers back into the market.
Additionally, the 50-day moving average (MA) has crossed below the 200-day MA, forming the infamous “death cross” signal. This typically indicates a bearish market outlook and suggests the potential for further declines.
The RSI values have mostly remained below the 60 level, often hovering near or below the midline (50), which implies that bears are in control. The lack of any sustained movement above 60 further reinforces the absence of bullish momentum in the short term.
Current Analysis and Long-Term Potential of LINK
The price of LINK has tested and slightly breached the previous support level of around $13.50 but failed to hold due to continuous bearish pressure. The price action remains consistently below the Ichimoku Cloud, indicating a strong bearish trend.
This suggests that LINK shows no immediate signs of recovery, reinforced by the MACD line (blue) being below the signal line (orange) and close to the zero line. Only 37% of LINK holders are in profit at the current price, while the majority (54%) are out of the money, contributing to selling pressure as investors try to minimize losses.
According to IntoTheBlock, exchange inflows are lower than outflows ($35.48 million vs. $36.54 million). This indicates that more LINK is being moved off exchanges, potentially for holding in private wallets, which is a sign of accumulation. Wherever there is accumulation, there are usually bulls.
Although LINK is unlikely to break out in the next 30 days, it still holds strong long-term potential.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
