Chainlink (LINK) has seen a 14% decline in value over the past seven days, mirroring the broader market downtrend. This double-digit drop has pushed Chainlink’s price below critical support levels, making it difficult to regain upward momentum without new demand entering the market.
This analysis highlights why LINK holders may need help to turn a profit over the next few weeks.
Chainlink to Lose Key Support Levels
Chainlink’s price movements assessed on a one-day chart reveal that it now sits below its 20-day exponential moving average (EMA). An asset’s 20-day EMA tracks its average price over the past 20 trading days. It gives more weight to recent prices, making it useful for identifying potential reversals or trends in price action.
When price falls below this key moving average, it suggests that the short-term trend has turned downward and that further price declines are more likely.
Read more: How to Buy Chainlink (LINK) With a Credit Card: A Step-By-Step Guide
Furthermore, Chainlink’s price is poised to break below its Ichimoku Cloud, lending credence to its bearish outlook. The Ichimoku Cloud gauges market trends, momentum, and support/resistance levels. When an asset’s price drops below the Cloud, it suggests a bearish phase, indicating that downward momentum is prevailing.
When this happens, the Cloud becomes a resistance level, making it more challenging for the price to rise above it without a surge in buying pressure.
LINK Price Prediction: Only a Surge in Buying Can Save the Day
LINK’s Aroon Down Line, which tracks the strength of its downtrend, currently stands at 92.66%, confirming the token’s strong price decline.
A reading near 100% indicates that the price has consistently made lower highs, signaling a strong downtrend. If this trend persists, Chainlink’s price could drop another 27%, potentially revisiting its August 5 low of $8.12.
Read more: Chainlink (LINK) Price Prediction 2024/2025/2030
However, if the altcoin sees a resurgence in buying pressure and breaks above its Cloud and 20-day EMA, Chainlink’s price may climb toward $19.73.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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Abiodun Oladokun
https://beincrypto.com/why-chainlink-price-may-struggle/
2024-10-04 16:00:00
