- Chainlink sees bears accelerating the downward price action.
- LINK price is drilling on the 55-day SMA, which could open the door towards $20.00
- As global market sentiment weighs, expect even a nose dive if a fire sale starts, with LINK dropping towards $15.
Chainlink (LINK) price action looked to be flying high at the start of 2022, but a crash is unfolding this week that is seriously hurting investors in Chainlink. Currently, LINK price is nearing the 55-day Simple Moving Average (SMA) that has acted as support and resistance several times in the past. A break lower would see price action dip lower towards either $20.70 best-case or $15.00 worst-case scenario.
Chainlink drafts worst-case scenario of 35% devaluation
Chainlink investors are on the ropes as bears push them up against a wall, attempting to get them to ‘hand all their money over’. As more stops are being hit below $24.55, with price action further losing value, the 55-day SMA starts to come into play as the last line of defense from what will be at least a 12% loss. A break below the 55-day SMA at $22.50 would open up the road towards the monthly pivot at around $20.70.
But that is not where the pain will stop for LINK bulls as the monthly pivot is effectively a no man's land, with the level not holding any significance as it has been chopped up quite a lot during December. With current market sentiment possibly not turning risk on overnight, expect more pressure on the monthly pivot with a possible break sub $20.00. A substantial penetration would see an accelerated selloff towards $15.00, which coincides with the low of May 23 and December 04.
LINK/USD daily chart
A bounce off the 55-day SMA or the monthly pivot could be possible if sellers respect the Relative Strength Index (RSI), which by then will be trading in the oversold area. This would see a slowdown in selling pressure and a slight pickup in buying volume as sellers need to buy LINK coins to book gains. A bounce off one of those levels is possible but would need to be managed with quite a tight stop and respect for the levels in between, prior to hitting the broad support at $15.00.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
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.