Bitcoin

LINK Presents a Buying Opportunity Amid Bearish Signals Pointing Towards 60% Decline

Link Buying Opportunity as Bearish Cues Predict 60% Drop

PATNA (CoinChapter.com)— Chainlink’s token LINK has some bullish cues lined up that could bring your ex running back into your life, but the short-term outlook for the token appears bearish.

According to CoinShares’ Digital Asset Fund Flows report, the Chainlink token’s investment vehicles saw substantial inflows in 2024, ranking behind only Bitcoin and some mixed token funds. The report highlights Chainlink’s ability to attract investors’ attention, likely due to its partnerships and updates.

LINK has shown a bullish rally since May 15, with a spike of nearly 36% and reaching a daily high of around $17.45 on May 21 before facing profit booking. The token price experienced another surge on May 24, reaching a daily high of approximately $17.8 before retracing gains.

LINK is currently in an uptrend since mid-June 2023, peaking in March 2024, and is now consolidating within the $15 to $18 range. Despite the stability, there are indicators pointing towards a potential short-term decline.

The Chainlink token is moving within a parallel channel pattern, with LINK prices attempting to break above the channel’s resistance. Fibonacci retracement levels indicate potential reversal points, with a bounce from the 0.5 Fibonacci level near $13 suggesting it as a support zone.

The immediate outlook remains cautious due to resistance from the channel’s resistance, which could lead the token to test support near $13, potentially erasing more than 24% of LINK’s gains. The Relative Strength Index (RSI), currently neutral at 65.4, suggests overbought conditions and a possible short-term pullback.

On the other hand, a bearish risk for LINK’s price comes from the technical pattern known as the ‘descending triangle,’ indicating a potential 60% downside target. Market analysts view the descending triangle as a bearish continuation signal, with a configuration signaling increasing selling pressure compared to buying pressure.

While the long-term trend for ChainLink remains bullish, the short-term outlook is bearish. This presents a potential buying opportunity for traders as LINK navigates through these uncertainties.

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