Chainlink [LINK] Risks a Fall Below $20 as Sell Pressure Remains Dominant

The cryptocurrency market’s combined valuation fell to $1.47 trillion as Bitcoin and altcoins tumbled. Chainlink [LINK] also took a hit and was still down by 2.56% weekly. Once a top 10 token, LINK fell to the 15th spot as several altcoins outperformed this quarter.

The digital asset was recently in the news after it revealed joining Gitcoin Grants Round 10. However, the developments and the integrations of late has failed translate into an impressive price run.

Chainlink [LINK] declined by 4.36% over the past 24-hours which drove its price to $20.38. At the time of writing, LINK recorded a market cap of $8.81 billion and a 24-hour trading volume of $733 million.

Chainlink [LINK] Daily Price Chart:

The volume has been moderate so is the volatility in the coin market. The falling wedge shaping up on the daily Chainlink [LINK] chart signaled a potential bullish breakout following the completion of the pattern. However, the moving averages were far from projecting positive signals.

The 50 DMA [Pink] sustained a bearish crossover with the 100 DMA [Blue] on the 20th of June. The upsloping 200 DMA [Yellow] which moved over the LINK price candles further depicted a growing bearish pressure in the market. If the bulls fail to defend the area, the trend could result in a potential death cross.

The bearish crossover of MACD depicted a phase of low buying demand in the market. The Chaikin Money Flow [CMF] also sustained a sharp fall below the half-line suggesting outflow of capital from the coin market signifying further losses in its price.

The RSI also settled well below the 50-median line as selling pressure intensified.

The above charts depicted a bearish trend in the Chainlink market. If the falling wedge invalidates the negative cues, the crypto-asset could target resistance levels of $26.71 and $32.4. Upon breaching these points, LINK could further aim for high of $42.45.

On the contrary, if the bears take full control, Chainlink could fall to support levels of $18.27, $13.84, and $10.43 respectively.

Chayanika Deka: Chayanika is a full-time journalist at TronWeekly with over two years of experience. A graduate in Political Science and Journalism, she focuses on the political and financial impact of cryptocurrency and blockchain developments.