As a researcher with experience in cryptocurrency market analysis, I’m closely monitoring the current correction in the crypto market and its impact on Chainlink (LINK). The bearish trend is still strong for several major altcoins, including LINK, which has recorded an 8.3% loss over three consecutive days, dropping to $13.57.
As an analyst, I’ve observed that weekends tend to be more stable in the cryptocurrency market with Bitcoin attempting to hold above the $64,000 mark. However, a bearish trend persists for several significant altcoins, including Chainlink, which is currently experiencing a downward trend. Over the past three days, LINK‘s price has dropped by 8.3%, reaching a low of $13.57. If Bitcoin falls below the $60,000 mark, it could potentially intensify this correction for Chainlink.
21M $LINK Unlocked from Chainlink Noncirculating Supply Contracts
In the midst of the present market downturn, the Chainlink price demonstrates a “V-shaped top” reversal at the $19.2 level. The formation of the first lower high following a significant uptrend is an early signal that traders’ sentiments towards the LINK token may be shifting.
As a crypto investor, I’ve witnessed a significant downturn in the value of my LINK holdings. The asset has plummeted by approximately 29%, leaving it trading at $13.62. Concurrently, the market capitalization for this digital currency has dropped to $8.281 Billion. If the selling pressure continues unabated, I anticipate that the price of LINK could experience a further decline of around 9-10%, potentially reaching a multi-month support level of $12.26.
Buying opportunities are particularly attractive when the support aligns with the 200-week moving average and an upward trendline, forming a potent convergence point for purchasers to launch their counteroffensives.
Additionally, Chainlink has made accessible 21 million LINK tokens, worth approximately $295 million, from its previously locked supply agreements, as reported by Spot On Chain. These tokens are now included in the total circulating supply.
- 18.25 million $LINK ($264 million) to Binance.
2.25 million $LINK ($31.3 million) to a multisig wallet.
As a crypto investor, I’ve noticed that since August 2022, Chainlink has released 127 million dollars worth of LINK tokens and transferred 107.7 million dollars’ worth to Binance. The average price during this period was around $9.89. At present, approximately 391.5 million LINK tokens, equivalent to about $5.4 billion, are still locked in 24 contracts.
As a crypto investor, I’ve noticed that approximately $21 million worth of $LINK tokens (equivalent to around $295 million in total value) were released from Chainlink’s non-circulating supply contracts about 3 hours ago.
• 18.25M $LINK ($264M) to #Binance
• 2.25M $LINK ($31.3M) to Multisig 0xD50f
Significantly, Chainlink has released 127 million dollars’ worth of LINK tokens and transferred 107.7 million dollars’ worth to Binance at approximately $9.89 each since August.
— Spot On Chain (@spotonchain) June 21, 2024
In spite of recent price fluctuations, the value of $LINK has remained relatively constant, implying a robust and balanced market. This signifies that the market has effectively managed the influx of new supply, suggesting a substantial level of demand.
A bullish reversal becomes more likely with this price increase, providing a chance for sidelined traders to jump in at a lower cost. Nevertheless, for buyers to effectively take charge of the asset, they must first breach the resistance trendline above.
As a crypto investor, I believe that if the market experiences a significant breakout, it could lead to an increase in buying pressure and encourage more investors to push the price even higher. The next resistance levels to watch out for would be the previous highs at $22.8 and then $28.7.
If the price falls beneath the trendline, it’s a sign that the downtrend is likely to persist, potentially leading the price to reach $9.46.
Technical Indicator:
- Experimental Moving Average: A bearish crossover between the 20-and-200-day EMA should accelerate the selling pressure for a prolonged downfall.
- ADX: An uptick in ADX 37% indicates the sellers leading an exhausted fall will need short bounced to recuperate the selling momentum.
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2024-06-23 00:12