Tanya Abrosimova
Independent Analyst
- LINK may be vulnerable to further losses as the price dropped below the daily SMA50.
- A sustainable recovery above $12.80 will mitigate the initial bearish pressure.
Chainlink (LINK) has lived through one of the worst weeks in history. The token with the current market capitalization of $3.9 billion lost nearly 35% of its value in the last seven days and touched the area below $11.00 for the first time since the beginning of August. At the time of writing, LINK/USD is changing hands at $11.00, down over 10% on a day-to-day basis. The token's trading volume slumped to $1.3 billion from $1.7 billion on Friday, September 4.
LINK/USD: The technical picture
Technical signals imply that LINK's price has not bottomed yet. The token dropped below the daily SMA50 and may retest the support of $10 created by the upside trendline from July 6. This barrier should slow down the bears and create a pre-condition for an upside correction. However, once it is cleared, the sell-off may be extended towards $8.6 (the daily SMA100). A sustainable move below this area will signal that the bullish trend is over, and the price is ready to return to the range that dominated in the first half of 2020.
A move above the daily SMA50 (currently at $12.23) will mitigate the immediate bearish pressure and allow for a recovery towards $13.80-$14.00. This area served as a support at the end of August.
LINK/USD daily chart
The 4-hour chart's picture confirms the downside momentum of the coin with the local support at $10.00. The initial recovery attempts will be limited by the consolidation area on approach to $12.80. The critical resistance is created by a combination of the 4-hour SMA50 and SMA100 at $15.
LINK/USD 4-hour chart
-637349080372631409.png)
To conclude, LINK/USD is vulnerable to further losses with the support areas at $10 and $8.6. Meanwhile, a recovery above the resistance zone of $12.20-$12.80 will negate the immediate bearish scenario and allow for a move towards $15.00.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.