As a seasoned crypto investor with over a decade of experience navigating market cycles, I’ve seen my fair share of ups and downs. The recent decline in Chainlink (LINK) price is certainly not unfamiliar territory for me, but it’s always a bit disheartening to see the LINK trading below key support levels, especially considering its impressive performance earlier this year.
The cost of Chainlink (LINK) has seen a significant drop in value, mirroring broader decreases across the market. At present, LINK is being traded below crucial resistance points, suggesting a bearish trend. Regrettably, despite attempts to rebound, Chainlink struggles due to the ongoing pessimistic atmosphere within the cryptocurrency sector.
Over the past few weeks, many cryptocurrencies have seen substantial price decreases. Notably, Bitcoin‘s value is now below $58,000, and Ethereum has dipped under the $2,600 level. This downward trend is also affecting other digital coin markets, including Chainlink.
Chainlink Price Analysis: Is a Recovery Possible Amidst Market Downturns?
Currently as I type this, LINK is valued at approximately $10.67, representing a minor drop of 0.47%. Over the last 24 hours, LINK has been battling to bounce back from its recent lows, with trades occurring between $10.27 and $10.78.
Based on information from CoinmarketCap, the trading volume of the cryptocurrency surged by a substantial 29.25% over a 24-hour span, suggesting that more traders are showing increased interest in it during its downward trend.
Under current market conditions that are growing increasingly bearish, Chainlink’s price might first stabilize around $10.00 before dropping. If the downward trend continues at its present pace, it could potentially decrease to $8.00. In particularly unfavorable circumstances, a fall to as low as $7.00 is possible.
Is There Hope for a Reversal Soon?
For Chainlink’s price, the 4-hour technical indicators suggest a pessimistic trend. Specifically, the Moving Average Convergence Divergence (MACD) points to a bear market. The MACD line is currently beneath the signal line and has been falling, which strengthens the negative feelings among traders regarding this digital currency.
Additionally, the histogram, representing the gap between the MACD line and its signaling line, is displaying a rise in larger red sections. This suggests that negative momentum is becoming more powerful.
As an analyst, I’ve recently delved into the distribution of Chainlink (LINK) token holdings, and data from IntoTheBlock has shed light on some intriguing insights. At present, a substantial chunk, approximately 558.18 million LINK valued around $5.94 billion, is categorized as ‘In the Money’. This implies that these holders have purchased LINK at a price below the current market price of $10.64, signifying potential profit if they choose to sell.
Approximately 55.82% of Link holders make up the majority, while around 39.74% (equivalent to approximately 397.45 million LINK) are considered ‘Out of the Money’, having bought at higher prices compared to current market value, totaling roughly $4.23 billion. The remaining 4.44% or about 44.38 million LINK fall under the ‘At the Money’ category, meaning their purchase price is close to the current market worth.
On the flip side, an increase in optimistic trading activity may indicate a transition into a favorable market period for Chainlink. This surge might surpass the resistance level at $15.00 and possibly propel the price towards $20.00. If this positive trend continues, the price could climb even higher, potentially reaching $30.00, as the bullish momentum builds up.
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2024-09-02 20:18