Chainlink Price Could Crash 13% After Recent Oracle Integration

Chainlink price remains a focal point of the entire crypto market as the DeFi giant continues to further its reach into the TradFi industry. The latest addition to the long list of Chainlink data Oracle users is Superstate, an asset management fund with over $103 million in Assets under management (AuM). LINK price, however, doesn’t reflect this fundamental development. A bearish pattern breakout threatens to pull the price back to $8.00.

On-Chain Metrics Hint Potential Sell-Off

On August 12, Chainlink announced a partnership with Superstate, an asset management firm specializing in tokenized financial products. 

Asset management firm @superstatefunds is now leveraging #Chainlink’s infrastructure for tokenized assets.

How Chainlink Data Feeds and soon Proof of Reserve help bring critical NAV and AUM data onchain for Superstate’s USTB tokenized treasuries fund ↓https://t.co/4rrW2VcY05 pic.twitter.com/K3OA6GnhAi

— Chainlink (@chainlink) August 12, 2024

Superstate will integrate Chainlink’s Price Data Feeds into its tokenized treasury fund, the Superstate Short Duration US Government Securities Fund (USTB), enabling on-chain tracking of its net asset value.

While this partnership marks a positive development for Chainlink, investor sentiment appears mixed. On-chain data suggests potential sell-off signals. According to IntoTheBlock, the net flow of large LINK holders is negative at 17%. Over the past seven days, large holders reduced inflows by 84% and outflows by 67%, indicating that some LINK tokens continue to exit their wallets—implying potential selling.

Additionally, data from CryptoQuant indicates a slight increase in Chainlink’s exchange inflow over the last 24 hours, suggesting that investors may be positioning themselves to sell.

In response, Chainlink’s price has dropped 4.1% in the last 24 hours, now trading at $10.19. Technical analysis suggests that LINK investors should prepare for the possibility of further downward movement in the coming days.

Chainlink Price May Succumb to Pressure

Chainlink price is overall in a bearish trend as the price is trading below both the 50-day EMA (currently at  $10.94 ) and the 200-day EMA (currently at  $12.72). 

A bearish rising wedge pattern formed and broke to the downside. The LINK price is now retesting the lower boundary of the wedge before potentially moving further downward.

The key support and resistance levels for LINK price include:

• Resistance 1: The 50 EMA at $10.94.
• Resistance 2: The 200 EMA at $12.72.
• Support 1: The lower boundary of the rising wedge, which is currently being tested.
• Support 2: Around $8.00

The price has already shown signs of breaking down from this pattern, which, if confirmed by volume and price action, could lead to further declines.

The Relative Strength Index (RSI) is hovering around 46.56, which is below the neutral 50 level and indicates that there is still room for further downside before reaching oversold conditions. The Chaikin Money Flow (CMF) is slightly positive at 0.14, suggesting a modest inflow of capital, but this isn’t strong enough to counteract the bearish momentum.

Overall, the bearish rising wedge pattern suggests a potential downside move for LINK.

Chainlink price prediction shows that a rise above the 50-day EMA could signal market strength, invalidating the current bearish thesis. LINK price would rise higher to $12.72, after which the asset may revisit $15.