LINK Price Downtrend Continues For A Month; What Technical Indicator Says?

Chainlink network has come forward to meet the growing demand for tokenized assets with its current collaboration with Fidelity International and Signum to avail NAV data on-chain. This partnership was to offer access to real-time data and better transparency. However, Chainlink’s price has been struggling for a long despite the continuous collaboration by the network, questioning interest among investors. In the last 24 hours, the LINK price has dropped more than 8%, bringing the value down to $13.27. But that is not all, as it has been in a downtrend for a month, losing more than 24% of its value.

LINK has been down for three years now, as after setting the all-time high of $52.88 on May 10, 2021, the price has struggled to surge to the same. The best performance in the last three years was during this March rally, where the LINK price surged to a maximum of $21.42, less than half of the ATH.

$30 million investment Failed To Lift LINK Price

Despite the ongoing decline, whale activity has been consistent with these tokens, as the 54 new wallets have $30 Million worth of LINK tokens. Based on the Lookonchain reports, these wallets have withdrawn $2.08 Million LINK ($40.28 Million) from the popular centralized exchange Binance over a week. As the LINK price has declined for days, these large holders, which have not moved their holding for weeks, snapped the tokens recently.

This mysterious whale continues to accumulate $LINK!

And has accumulated a total of 4,556,684 $LINK ($83.6M) from #Binance via 55 fresh wallets in the past 5 days.https://t.co/cYgH52rHzxhttps://t.co/B32QIBNNu2 pic.twitter.com/cP7piTmNaT

— Lookonchain (@lookonchain) February 10, 2024

These strong sentiments from the large investors led to a slight recovery on July 2, as the price surged to $14.66 before entering another correction. This indicates strong interest from institutional investors, thanks to the network’s increasing role in blockchain interoperability.

What Technical Indicator Says About Recovery?

Overall, the token is in a complete selling zone where technical indicators like the Relative Strength Index, MACD(12,26), Highs/Lows(14), Bull/Bear Power(13), and many other favors the ongoing decline. However, a few analysts have spoken of the presence of a golden crossover in the hourly charts earlier, which is a minor signal about the bullishness among investors.

Nevertheless, the presence of the higher Short Sellers among the buyers is not to be ignored, as the recovery might end instantly. The current LINK price is closer to the support point at $13.25, and if the candle formed below the point, the token might continue to decline. In contrast, if the price bounced back before touching the support, the next resistance lies at 14.27, which can push the price further. With that, many analysts have hinted at the possibility of the price recovery to the $16 mark in the upcoming days.

Chainlink has gained a big reputation due to its increasing adoption and continuous upgrades. This is why analysts are quite optimistic about the long-term performance instead of the current drop. Michaël van de Poppe, a famous crypto analyst, posted about the repetition of the patterns in LINK price charts. As per him, the first six months are downwards, and the rest are in a bull market, ending the post on the note that the good days are ahead as we are in the second part.

Continue Reading 3 Signs Of a Sustained Bearish Sentiment