Chainlink Price Faces 20% Downside Risk as Key Support Falters

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In the midst of a wider market decline, the Chainlink price has been gradually correcting, as indicated by the lower highs in the daily chart. This correction appears to have formed a descending triangle pattern during analysis of the daily chart. With market instability fueling this bearish pattern, there’s a possibility for an extended drop in LINK coin values. Whether or not to sell depends on individual investment strategies and risk tolerance.

Is Falling LINK Price Heading to $14?

Chainlink Price Faces 20% Downside Risk as Key Support Falters

The ongoing correction trend in Chainlink coin can be traced through the development of a descending triangle pattern. The downsloping trendline led the altcoin price from $22.8 to $17 registering over 25% fall within a month.

Traders can use the pattern to sell when there’s a bullish bounce, causing the price of LINK to drop and break down below the important support level around $16.5. This decline resulted in an intraday loss of 8%, pushing the altcoin beneath the support, providing a significant hurdle for further correction.

At the deadline for this article, Chainlink’s coin is valued at a market capitalization of $9.43, keeping its place among the 20 largest cryptocurrencies. If the value of this asset continues to weaken, the price of LINK could potentially drop by an additional 20%, reaching a value of around $13.

On the flip side, the price range of $13-$14 is significant as it aligns with the 38.2% and 50% Fibonacci retracement levels. If the price stays above this level, it suggests that buyers have a strong control over the asset.

This month, Bitcoin is set for its next halving event, which could lead to a significant recovery in the cryptocurrency market. Similarly, Chainlink’s price might bounce back from the current support level to avoid a major slide.

Technical Indicator

    BB Indicator: The downsloping in the lower boundary of Bollinger Band indicates the traders are aggressive in selling this coin.
    Average Directional Index: The daily ADX slope uptick at 18% reflects the selling momentum in build among LINK traders.

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2024-04-12 21:35