As a seasoned crypto investor who has witnessed several market cycles, I find myself intrigued by the current state of Chainlink (LINK). The price action exhibits a blend of indecision and anticipation, much like a cat on a hot tin roof.
As a crypto investor, I’m currently navigating the uncertain waters of Chainlink’s price movement. The community is split, with some eager to accumulate more tokens while others are considering selling ahead of the predicted 18% downturn. However, I’ve noticed some whales on centralized exchanges strategically playing the long game by setting buy limit orders at strategic price points, seemingly anticipating a dip in price. Despite the short-term volatility, Chainlink’s fundamental outlook remains optimistic, with its technology continuing to gain traction and adoption across DeFi and TradFi institutions.
Extended Chainlink Price Drop Likely
During the New York trading period, the Link price fluctuated near $10.37, representing a 1.8% decrease over the past 24 hours. Examining the Chainlink price graph reveals a predominantly declining trend, with the 200 EMA (represented by the black line) sitting notably above the current price point, suggesting a bearish outlook.
As a crypto investor, I’ve noticed that the price of LINK has been battling to surge beyond the 50 EMA (represented by the green line) and the 21 EMA (the red line), which are serving as challenging resistance points. However, if bears manage to drive prices down, LINK might find a cushion around the $9.00 mark, a region reinforced by past lows.
The behavior of Chainlink’s price suggests hesitation, as it produces narrow candle formations close to its peak. This pattern often hints at an upcoming breakout, although the direction it might take remains unclear.
On the other hand, the daily chart reveals a developing bear pennant. Given that this bearish configuration often results in a break towards the downside, there’s an increased likelihood of a continued bearish trend, potentially leading to stronger negative sentiment.
In simpler terms, the Relative Strength Index (RSI) currently hovers around 50, indicating a balanced market situation. This means the market isn’t showing signs of being overbought or oversold at the moment, supporting the notion of consolidation.
1. The two Exponential Moving Averages (EMAs) of 21 and 50 are drawing near, suggesting that the market is in a consolidation phase. If Chainlink’s price surges past these averages, it could initiate an upward trend, contradicting the bearish view if the price persists above the 200 EMA ($11.90).
Whales Are Getting LINK at These Prices
Despite the wider market’s concern about Bitcoin‘s potential drop to $54,000 due to recent volatility, large investors (whales) are taking advantage of favorable prices to increase their holdings of Chainlink (LINK) tokens. A Liquidation Map from Coinglass indicates that the total Short Liquidation Leverage is substantially greater than Longs, suggesting more traders are shorting LINK on Futures markets rather than buying.
In simpler terms, the fact that more people are betting on a decrease (Shorting) rather than an increase (Longing) in Chainlink’s price suggests that there is more pessimism (bearish sentiment) about its future growth prospects among traders, as they believe there may be more room for it to fall.
A deeper analysis of the LM reveals that the majority of traders who are Long have placed their buy limit orders around $10.17, $9.91, and $9.32. These buy-limit order prices belong to traders who are 50X, 25X, and 10X Leverage Long on Chainlink.
An examination of the Liquidity Order Books offers greater insight into where the whales might be strategically positioning themselves. As per Coinglass data, there are approximately $2.77 million worth of limit buy orders from whales placed between $8.00 and $9.00. This suggests that Chainlink may bounce back if it falls to this price range.
In summary, Chainlink price is currently in a downward trend, mostly due to Bitcoin volatility, but both retail and whale investors are bullish, leading them to place large buy limit orders between $8 and $9. This may present a lucrative buy-in opportunity that aligns with smart money investors.
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2024-08-15 17:11