Chainlink (LINK) has a bearish trend and this shows that the market may continue to decline in the future. In a recent X post, Alan Santana revealed that Chainlink has failed to break through the EMA233 resistance level to sustain the upward move, this is an indication that the bears are still very much in charge. Since March 2024, the price of LINK has been drifting lower in a well-defined bearish trend characterized by lower highs and lower lows.
This further bearish trend has attracted the attention of traders and analysts who expect another steep fall. This failure for Chainlink to close above the EMA233 resistance level has affirmed the bearish view that more pressure will likely be exerted downwards. This bearishness that has been seen in Chainlink is not confined to the cryptocurrency alone but has extended to the rest of other major cryptocurrencies.
Chainlink Below EMA233
At the moment, Chainlink is trading below the EMA233 resistance, which is important for the crypto asset’s price. This technical barrier has proved very difficult to breach, and the breakdown of this level has convinced most analysts that Chainlink remains in a bear market. The formation of successively lower highs and lower lows means that the market has not yet received sufficient support to turn around the trend.
Other observers have also noted that the bearish run of Chainlink has other consequences as well. The prices of LINK have been closely associated with the prices of other popular cryptocurrencies such as Bitcoin, Ethereum, and Binance Coin. Consequently, when Chainlink is bearish, it is a clear indication that the whole cryptocurrency market is bearish. This contradicts the previous support at EMA233 suggesting that further price deterioration is imminent which is bad news to investors in the sector.
Market sentiment remains rather weak as more and more people share their predictions of an imminent market crash. This is because Chainlink’s bearish signal is being perceived as suggesting the same for the entire cryptocurrency market. As of press time, LINK is trading at $12.07, showing a 4.66% decline over the last day.
Traders are advised to act before it gets worse as there is little hope of the market improving soon. Several financial gurus have discouraged investors from trying to time the market and waiting for the best time to make their move, which ends up frustrating them as prices plummet.
The bearish outlook of Chainlink as it failed to reclaim a crucial technical level indicates that the price decline should continue. As conditions now stand, there is the potential for a severe market decline and people are being urged to exercise caution. The last quarter of 2024 could pose problems to investors in the ever risky cryptocurrency market given that bearish pressure does not seem to be relinquishing the scene anytime soon.
