There are 31 continuous days in which Chainlink has kept falling back, for today it is looking to visit $ 10 again. This fall in LINK has been occurring after the all-time high of $ 20.11 was reached.
At the time of writing its price is $ 11.02, dragged down by a strong and clear short-term downtrend, despite the fact that much of the crypto market is making profits.
But will this situation last long? Let’s take a look at the big picture to find out.
Analysis of Chainlink (LINK) while trying to defend the $ 10
The DeFi market has managed to resume its uptrend, but the LINK token has not behaved in the same way despite its important participation in the ecosystem of decentralized finance, offering oracles to complement smart contracts.
However, its fundamentals remain solid, and large investors have not been affected by the fall that the price is going through, it is even likely that they will continue to increase their position taking advantage of the discount prices.
This behavior of the majors is reflected in the graph provided by Glassnode, where they indicate the amount of supply maintained by 1% of the participants.
Today this indicator is at an all-time high, which points to the little interest of the whales in dumping their tokens, relying on the intrinsic value behind the price.
It is also possible to analyze the operation and robustness of the chain, by reviewing the amount of tokens within smart contracts. This indicator has not been affected at all by the 45% drop, leaving the bullish direction completely intact with the intention of seeking new highs.
With this in mind, let’s take a look at the Chainlink (LINK) price charts to find out if it is very prone to losing $ 10.
In the medium term, the direction is solidly bullish, observed in the weekly chart with increasingly higher lows and highs.
This direction is supported by the moving averages 8 EMA and 18-week SMA crossed to the upside and functioning as dynamic supports.
It is quite likely that the drop we have been witnessing is nothing more than a reversal of this trend.
Short term trend
In the daily time frame is where we begin to observe the power of the bears during the last days, capable of taking control of the short-term trend that is still in force.
This trend is followed by the moving average 8 EMA and 18-day SMA, also functioning as dynamic resistances.
The 200-day SMA is still bullish, supporting the strong gains LINK has made in recent months.
In the short term, it is very likely that we will see Chainlink continue to decline, at least to the demand zone between approximately $ 10 and $ 9.
This is where we should expect a price reaction, where it is most likely to be bullish, as a result of the pressure exerted by the medium-term trend.
If, on the contrary, it is crossed, the price could look for the next support zone, close to $ 7.
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