• Chainlink technical picture worsened after a move below daily 100 EMA.
  • LINK's exchange supplies remain low, meaning that holders are in no hurry to sell coins.

Chainlink (LINK) extended the decline and touched $11.22, the lowest level since November 26. Despite the sell-off, LINK is still the seventh-largest digital asset with a current market capitalization of $4.7 billion. The coin has lost over 7% in the recent 24 hours and 12% on a week-to-week basis. 

A move below daily 100 EMA bodes ill for the bulls

LINK recovery from $10.55 (November 26) pushed the price above $15, however, the upside momentum was not sustained as the coin resumed the decline and broke below the daily 50 EMA and 100 EMA . The price reached important support of $11.30 created by an upward trendline. A sustainable move below this area will increase the downside pressure and bring back psychological $10, followed by daily 200 EMA at $9.8, into focus. 

LINK's daily chart

LINK's daily chart

The short-term technical picture reflects increased bearish pressure. However, the on-chain metrics give bulls a glimpse of hope.

LINK holders are in no hurry to sell

Chainlink supply on the cryptocurrency exchanges stays close to the all-time low levels of 7.24%, meaning that the market is still in the accumulation phase. Traders usually start moving their coins to the exchange wallets before the dump; meanwhile, the low or decreasing exchange supplies mean that the selling pressure is receding. 

LINK supply on top cryptocurrency exchanges as a percentage of the total supply has been melting down since the beginning of September. The metric has created a substantial divergence with the price, signalling that the coin is well-positioned for a rebound.

LINK's supply on the cryptocurrency exchanges 

LINK supply on the cryptocurrency exchanges 

Moreover, IntoTheBlock's "In/Out of the Money Around Price" model shows that LINK sits on top of a significant support area. Over 8,700 addresses previously purchased over 36 million LINK tokens between $11.67 and $12.03, meaning that this barrier can slow down the bears and trigger a recovery towards the local resistance of $12.40, as 5,600 addresses bought over 11 million LINK tokens around that level. 

LINK In/Out of the Money Around Price

LINK In/Out of the Money Around Price

However, an even stronger barrier comes on the approach to $13. Once it is cleared, the bulls won't face any stiff resistance until $18.


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


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP