Chainlink (LINK)

Chainlink [LINK] has performed decently during the course of the recent market recovery and was still up by 7.67% over the past week. LINK has reached the target of the governing chart pattern and has surged by over 103% since July 20 low. Despite the minor weekend setback, the increasing volatility in the coin market can add credence to the overall bullish thesis.

Over the past 24-hours, Chainlink [LINK] has dropped by 3.93% which took its price to $26.63. At the time of writing, the digital asset registered a market cap of $11.74 billion and a 24-hour trading volume of $1.08 billion.

Chainlink [LINK] Daily Price Chart:

Chainlink [LINK] price trend has been noteworthy as it was close to June levels. The placement of moving averages on the daily chart also looks optimistic. After hovering above the LINK candles, for the most part, the 50 DMA [Pink] and the 100 DMA [Blue] slid below. The decreasing gauge between the moving averages as it approached a potential bullish crossover further boosted the chances of an extended recovery for LINK.

The 200 DMA [Yellow] has moved closer to the price candles depicting an increasing bullishness in the market. If the crypto-asset reclaims this level, crucial resistance points will come into play.

Moreover, the volume in the coin market has been substantial and appeared to be firmly backing the uptrend which was another positive sign.

The dotted markers of Parabolic SAR were aligned below the candles after a brief period of stagnancy in the market. The green closing bars of the Awesome Oscillator [AO] also depicted a strong bullish momentum as Chainlink continued to climb higher. The Relative Strength Index [RSI] bounced back from the lower ceiling of the overbought territory suggesting investors have faced selling pressure at higher highs even as the overall sentiment remained highly bullish.

Currently, Chainlink’s nearest resistance levels stood at $33.8 and $42.48, which, if broken, could help in reclaiming its ATH. The asset’s support points, on the other hand, were at $24.4 and $13.6 respectively.

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.

Chainlink‘s [LINK] on-chain metrics have remained undeterred during the latest market-wide rout that captured yet again as the weekend dawned. While several top assets are still struggling with the bearish impetus, the LINK token, on the other hand, continued to maintain a winning streak and retained its weekly gains above 45%.

It had formed a bottom on the 23rd of May when it fell below the $20-mark. However, on-chain market signals depicted a healthy market trend for the crypto-asset.

Where is Chainlink Headed?

It is important to note that Chainlink did bounce back quite effectively from a low of $17.50 to spin a gain of almost 2x at $35 levels before cooling off mildly. According to the crypto analytic platform, Santiment, LINK was now trading at a point of resistance and will have to stay above the support area for another chance to break above the resistance trendline. It noted

“Things will look really bad if we break support and go below the previous low, making yet another lower low to further confirms a bear trend.”

On the positive side, the recent bottom witnessed large clusters of spikes with respect to Daily Active Deposits. This ongoing trend may depict that a good amount of LINK holders have capitulated. Meanwhile, it was found that a large number of the token holders depositing. Santiment’s Exchange Inflow demonstrated signs of a significant amount of LINK was deposited near the recent bottom.

Upon looking at historical moves, the platform observed that in the past year, substantial inflows of the crypto-asset near bottoms have preceded a price uptrend. If it follows a similar path, Chainlink could, in fact, note a surge towards reclaiming its previous glory.

Besides, after the recent market correction that happened to be the biggest drop since last September, MVRV 30D spiraled down significantly and despite the uptick, it was still hovering in the undervalued zone. As per the crypto intelligence platform, this is good as the MVRV 30D settles down in a big way, as it offers less risk and ideal bottom pickings.

Hence, the overall market sentiment for Chainlink remained healthy signs after the market reset. The capitulation event can potentially be attributed to the exchange inflows and daily active deposits, which are ideal for forming bottoming structure.

Having said that, the digital asset was near a psychological resistance currently and the next few weeks will eventually reveal where the price is headed.

Chainlink [LINK] has undergone a correction since this week’s all-time high above $52. This was prompted by the crash in prices of Bitcoin and the other cryptocurrencies after Tesla’s fallout. The altcoin rush, that kicked off last week had pushed several tokens to soar higher, was rather short-lived.

LINK exchanged hands at $43.84 after testing crucial support area. While the uptrend has come to an abrupt halt, the investors in the coin market are still confident about its price movement in the coming days.

According to the latest stats, Chainlink market participants are moving their tokens out of cryptocurrency exchanges and into cold storage at a rapid pace. This was revealed by the crypto-analytic platform Santiment, which also stated that nearly 2.5% of LINK’s total circulating supply has exited crypto exchanges in the period of the last two months alone.

Moreover, the amount of LINK tokens held by the top 10 crypto exchange addresses has taken a serious plunge by a factor of 67.6% in the past six months. Its tweet regarding the same read:

“It’s been 6 days since Chainlink’s new ATH of $52.88. 2.5% of LINK tokens have moved off of exchanges in the past 2 months alone, and the top ten exchange addresses hold less than a third token now [23 million LINK] compared to 6 months ago [71 million].”

Ambitious Chainlink 2.0 Game Plan

LINK’s price has been rising steadily since the beginning of the year. The digital asset has formed three main tops this year which were followed by a period of correction and subsequent leg up breaching the previous high. The latest price movement was accompanied by a major development in the ecosystem.

Chainlink had recently unveiled a new whitepaper, Chainlink 2.0, dubbed as the ‘next steps in the evolution of decentralized finance [DeFi].’ The whitepaper had detailed the ambitious roadmap for 2.0 as well as the launch of a new architecture for the creation of hybrid smart contracts. The proposed system aims to deliver scalability and security to the LINK ecosystem.

Hence, LINK’s price was expected to exhibit swing points and start trading higher, above the current peak.

Chainlink [LINK] marines bought the latest pullback which helped in its recovery and cutting short its weekly loss to just 1.11%. Following this, the crypto-asset has been stuck between the range of $24 and $32 and was currently in a consolidation phase as sell pressure continued to grapple the coin market. LINK’s volatility appeared to have cooled down, at press time.

Chainlink [LINK] was still down by 4.35% over the last 24-hours, as its trading volume also took $1.038 billion during the same time frame. The crypto-asset was trading at $27.19 while registering a market cap of $11.34 billion as it fell to the 11th position on the leaderboard.

Chainlink [LINK] Daily Price Chart:

The latest correction in LINK’s price pulled the crypto-asset to a level last seen during the late-Feb dip. Even as the price candles recuperate, the upward sloping 50 DMA [Pink] moved over them and trapped any aggressive bullish move. The 100 DMA [Blue], on the other hand, continued to hover below the candlestick arrangement.

If the LINK/USD pair fails to move above the 50 DMA, the bears could sink the price further low.

LINK Bulls Struggle To Dominate Market

The green closing bars of Awesome Oscillator depicted a low but bullish momentum that could help pull the price of Chainlink up from the current region. The MACD also appeared to be headed for a bullish crossover after weeks in the negative zone.

The RSI, however, faced severe rejection at the 50 DMA as sell pressure continued to gain traction in the Chainlink market. Hence, the possibility of the resumption of an uptrend seemed bleak.

The technicals have so far project a clear advantage either to the bulls or the bears which could mean that the LINK could tread in a similar pattern for a few more days before demonstrating some clarity on its direction.

The immediate resistance levels for Chainlink were found to be at $29.74, $31.77 and $34.73. The token found support at points $24.75, $21.09 and $18.36 respectively.

Chainlink [LINK] gained a much-needed upside momentum after weeks of dull price action. This helped it negate the losses and instead flip weekly gains of more than 16%.

Despite a major retreat from its all-time high above $35, the crypto-asset made a turnover to a crucial resistance level.

Chainlink [LINK] was up by 11.95% over the last 24-hours which drove the token value to $29.60. The extended sell-off period pushed the crypto-asset to the ninth-position on the crypto leaderboard.

Chainlink [LINK] Daily Chart:

Chainlink [LINK] underwent a bearish breakout after a month-long upward streak. The placement of the moving average remained unfazed by the plunge. The crossover between the LINK candles with the 50 DMA [Pink] was short-lived as the moving average settled below the former after the recent price rise.

Also, the 200 DMA [Purple] continued to hover quote below the 50 DMA as well as the candlesticks which was also suggested a bullish phase for the coin.

The gauge between the two moving averages continued to be on the rise which was a positive sign for LINK’s price action. The above chart depicted a strong buying at lower levels.

The Chaikin Money Flow noted a minor uptick indicating a inflow of capital in the coin market as price began to recover from slumber.

In addition, MACD hinted at a bullish reversal after being position on the negative side for nearly two weeks.

The RSO also recovered from the bearish territory as it made headway above the 50-median line depicting a rising sentiment buying pressure in the Chainlink market among the investors.

If the bulls manage to stall a correction at the current level LINK could target its immediate resistance level of $34. If the predicted bullish momentum fails to transpire, Chainlinnk could dip all the way down to its nearest support of $25.5. Failing to hold this level, could trigger another drop to the $21.5 support area.