A loss of only 2.58% in the past week should throw caution to Chainlink (LINK/USD) buyers. That’s because the slide has seen the cryptocurrency lose a short-term ascending trendline and triangle. The ascending trendline was already giving buyers hope that LINK could finally break to the upside at $8. Are we set for a further slump?
Well, there might be some good news. A popular crypto analyst famous for making accurate altcoin predictions expects big moves for Chainlink and Ethereum. The pseudonymous analyst has 184,900 Twitter followers, and his thoughts should, of course, raise some eyebrows. The analyst says that Chainlink trades within a narrow range and should soon break out with a huge rally.
As of press time, Chainlink price was at $6.95, slightly below an intersection of price and the ascending trendline. As the analyst mentions, Chainlink has been trading in a tight range of $6-$8 since May. The trading range is indicative that LINK is at a bottom zone. However, the key question is when is the breakout?
$8.0 remains the main resistance zone for LINK. Bulls have tried to break above the level, but the weak sentiment remains the Achilles’ heel. With the sentiment still not improving as much, Chainlink buyers may find it hard to break past $8 in the near term.
Source – TradingView
Technically, LINK trades below a short-term trendline. On the MACD indicator, momentum is weak, suggesting that a further decline is possible.
The latest weakness has also seen LINK fall below the 20-day and 50-day moving averages. The daily chart indicates that the 20-day MA is initiating a crossover below the 50-day MA. The movement could be a welcome note of a bear market for LINK.
We sure can’t say LINK is bullish based on the above technical pointers. The likely next bottom zone for the cryptocurrency is $6.0. However, we should consider the zone a reference support level as LINK has previously also shown indecision around $6.8.
Bottomline, LINK is attractive at or towards $6.0 and should be our area of interest. At the $6.9 level, we should be mindful that further decline is possible.
eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.
Buy LINK with eToro today
Capital.com is a global broker which offers over 200 cryptocurrencies for its users. It comes with a range of features such as; great security, 24/7 support, demo accounts and a wide variety of assets. On top of that, it also has no inactivity, withdrawal or deposit fees, which makes it stand out from other crypto brands.
Buy LINK with Capital.com today
Keep updated with our round the clock and in-depth cryptocurrency news
Please be aware that some of the links on this site will direct you to the websites of third parties, some of whom are marketing affiliates and/or business partners of this site and/or its owners, operators and affiliates. We may receive financial compensation from these third parties. Notwithstanding any such relationship, no responsibility is accepted for the conduct of any third party nor the content or functionality of their websites or applications. A hyperlink to or positive reference to or review of a broker or exchange should not be understood to be an endorsement of that broker or exchange’s products or services.
Risk Warning: Investing in digital currencies, stocks, shares and other securities, commodities, currencies and other derivative investment products (e.g. contracts for difference (“CFDs”) is speculative and carries a high level of risk. Each investment is unique and involves unique risks.
CFDs and other derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how an investment works and whether you can afford to take the high risk of losing your money.
Cryptocurrencies can fluctuate widely in prices and are, therefore, not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Past performance does not guarantee future results. Any trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Your capital is at risk.
When trading in stocks your capital is at risk.
Past performance is not an indication of future results. Trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Prices may go down as well as up, prices can fluctuate widely, you may be exposed to currency exchange rate fluctuations and you may lose all of or more than the amount you invest. Investing is not suitable for everyone; ensure that you have fully understood the risks and legalities involved. If you are unsure, seek independent financial, legal, tax and/or accounting advice. This website does not provide investment, financial, legal, tax or accounting advice. Some links are affiliate links. For more information please read our full risk warning and disclaimer.
