• The number of daily active addresses on ChainLink has been steadily decreasing.
  • LINK has been failing to get past the $12.78 resistance level.
  • One analyst predicts the price to fall to $10 levels.

ChainLink has been on a massive downtrend since the mid-August $20 rejection. Currently, the price has been failing to get past the $12.78 resistance level. Many believe that LINK/USD’s future price performance is clearly dependent on whether it gets past this level or not. Unfortunately, it looks like we have some bad news for them.

Firstly, the number of daily active addresses on ChainLink has been steadily decreasing. This is always a bearish sign.

Chainlink addresses

Now, let’s look up some technical analysis.

LINK/USD daily chart

LINK/USD daily chart

LINK/USD has dropped from $12.77 to $11.97 over the last two days as the MACD shows sustained bearish market momentum. The SMA 50 and SMA 20 are about to cross over each other to form a bearish cross pattern. 

So, if a further bearish movement is indeed expected, then how much further can it fall? According to one trader, he is expecting the rejection to spark a massive sell-off over the next few days, which can see LINK fall to $10-levels.

LINK/USD monthly chart

LINK/USD monthly chart

The LINK/USD monthly chart shows how drastic this bearish movement is. The bears are correcting the price following four straight bullish months. The price has dropped from $15.73 to $11.97 over the month.

LINK/USD 4-hour chart

LINK/USD 4-hour chart

The 4-hour chart shows that the price has faced rejection at both the SMA 50 and SMA 20 curves. The former curve has crossed over the later to chart a bearish cross pattern. The relative strength index (RSI) is trending in the neutral zone, so further bearish correction is expected. 

LINK/USD hourly chart

LINK/USD hourly chart

The hourly LINK/USD chart is trying to break above the downward trending line. The buyers bounced up from the $11.96 support line and are looking to break above the trending line and touch the $12.12 resistance level. The MACD shows decreasing bullish momentum.

LINK/USD IOMAP

LINK/USD IOMAP

While the analysts are predicting a drop to the $10-level, the IOMAP shows us that the price can drop to $11.64 before it encounters healthy support.  On the other hand, the chances of any upward movement look next to none since the price faces a stack of strong resistance levels.

Quotes from Twitter-verse


 


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 Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.

More Bitcoin News
Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.

More Litecoin News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.

More Cryptocurrencies News
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

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