- Chainlink succumbs to selling pressure in the market and refreshes lower levels at $11.
- LINK/USD holds the descending channel support as bulls fight for a reversal from the dip.
Chainlink, a cryptocurrency platform that managed to place itself at the center of the decentralized finance revolution is bleeding massively from the broad-based declines in the cryptocurrency market. In August LINK rallied to highs of $20 amid ballistic price movements in the DeFi ecosystem. At the moment, Chainlink remains the only source of real-time price feed data for the DeFi sector. However, it will not hold this throne forever as other projects are coming up with alternative sources of data that are envisaged to be cheaper.
Towards the end of August, Chainlink recovered significantly from the support confirmed at $13. Unfortunately, a barrier at $18 kept the bulls away from their ultimate target at $20. Analysts in the industry believe that if the seller congestion at $20 is dispersed, LINK would begin the next phase of its bullish journey; scaling the levels towards the next milestone at $30.
Meanwhile, the losses in the market over the last 24 hours have been devastating even for LINK. Data by CoinMarketCap shows that the token has lost over 18% of its value in the 24-hour period. The grand fall overshot the former support at $13 and refreshed lows at $11.
At the time of writing, Chainlink is trading at $11.87. The path of least resistance remains south according to technical indicators like the Relative Strength Index (currently in the oversold region) and the Moving Average Divergence Convergence (diving deeper in the negative region). If the channel support is shattered, we can expect a continued bearish price action that could test support at $10 and $8 respectively.
It is essential to note that buying pressure is also present. For instance, besides the resistance provided by the 100 Simple Moving Average (SMA) at $14.38 and the 50 SMA at $15.46, the gap suggests that buyers have some influence over the price. In this case, a reversal is possible in the near term. The RSI could signal the beginning of the recovery especially after coming out of the oversold region.
LINK/USD 4-hour chart
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