As a seasoned crypto investor with over a decade of experience in this rollercoaster market, I’ve learned to navigate through turbulent waters and spot trends that less-experienced eyes might miss. The recent partnership between Chainlink and Superstate is undeniably a positive development for the DeFi giant, but it seems the market isn’t fully appreciating its significance yet.
The importance of Chainlink’s price within the crypto market remains significant as it extends its influence into the Traditional Finance (TradFi) sector, with the latest adopter being Superstate, an asset management fund managing over $103 million. Despite this strategic expansion, the LINK price does not seem to be impacted positively by this fundamental growth. There’s a potential for a bearish breakout that could drag the price down towards $8.00.
On-Chain Metrics Hint Potential Sell-Off
On the 12th of August, Chainlink revealed their collaboration with Superstate, a company that focuses on managing assets and creating tokenized financial goods.
At SuperState Funds, I’m proudly integrating Chainlink’s robust infrastructure to manage our tokenized assets more efficiently and securely.
One method of rephrasing in a natural, easily comprehensible manner: By employing Chainlink Data Feeds and the upcoming Proof of Reserve, these tools facilitate the on-chain disclosure of essential Net Asset Value (NAV) and Assets Under Management (AUM) data for Superstate’s USTB tokenized treasuries fund.
— Chainlink (@chainlink) August 12, 2024
Superstate plans to incorporate Chainlink’s Price Data Services within its tokenized treasury fund, specifically the Superstate Short Duration U.S. Government Securities Fund (USTB). This integration will allow for real-time, on-chain monitoring of the fund’s net asset value.
As an analyst, I find myself observing a significant development with Chainlink’s new partnership, yet the investor response seems divided. Analyzing on-chain data, I detect potential sell-off indicators. According to IntoTheBlock, the net outflow of large LINK holders stands at 17%, which means these investors are withdrawing more tokens than they’re purchasing. Over the past week, inflows from large holders have decreased by a staggering 84%, while outflows have reduced by 67%. This trend suggests that some LINK tokens are being moved out of large holder wallets, signaling a possible selling wave.
Furthermore, data obtained from CryptoQuant shows a modest rise in Chainlink’s incoming exchange transactions during the past day, possibly signaling that some investors might be preparing for selling.
In response, the price of Chainlink has decreased by 4.1% over the past 24 hours and is currently valued at $10.19. Based on technical analysis, it might be wise for LINK investors to anticipate potential additional price drops in the near future.
Chainlink Price May Succumb to Pressure
The current trend of Chainlink’s price suggests bearishness, as it is currently trading below not only its 50-day moving average ($10.94) but also its 200-day moving average ($12.72).
As a crypto investor, I’ve noticed that a bearish rising wedge pattern has developed in the LINK market, and it appears to have broken towards the downside. Currently, we’re observing a retest of the lower border of this wedge, which could indicate a possible further downtrend for LINK prices.
The key support and resistance levels for LINK price include:
- Resistance 1: The 50 EMA at $10.94.
- Resistance 2: The 200 EMA at $12.72.
- Support 1: The lower boundary of the rising wedge, which is currently being tested.
- Support 2: Around $8.00
If the current trend in pricing exhibits indications of a drop, as supported by both increased trading volume and market behavior, it might signal additional decreases ahead.
In simpler terms, the Relative Strength Index (RSI) currently stands at 46.56, which means it’s less than the neutral point of 50. This suggests that there might be more room for a decrease in price before we reach an oversold state. The Chaikin Money Flow (CMF), on the other hand, is slightly positive at 0.14, indicating a slight influx of money, but this is not enough to counterbalance the prevailing bearish trend.
Overall, the bearish rising wedge pattern suggests a potential downside move for LINK.
According to Chainlink’s projected trend, breaking through the 50-day Moving Average (EMA) might indicate a robust market, contradicting the current bearish viewpoint. If this happens, the LINK price could climb up to approximately $12.72. Later on, there’s potential for the asset to revisit around $15.
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2024-08-13 15:12