A loss of only 2.58% in the past week should throw caution to Chainlink (LINK/USD) buyers. That’s because the slide has seen the cryptocurrency lose a short-term ascending trendline and triangle. The ascending trendline was already giving buyers hope that LINK could finally break to the upside at $8. Are we set for a further slump?
Well, there might be some good news. A popular crypto analyst famous for making accurate altcoin predictions expects big moves for Chainlink and Ethereum. The pseudonymous analyst has 184,900 Twitter followers, and his thoughts should, of course, raise some eyebrows. The analyst says that Chainlink trades within a narrow range and should soon break out with a huge rally.
As of press time, Chainlink price was at $6.95, slightly below an intersection of price and the ascending trendline. As the analyst mentions, Chainlink has been trading in a tight range of $6-$8 since May. The trading range is indicative that LINK is at a bottom zone. However, the key question is when is the breakout?
Chainlink price shows the token has lost a crucial short-term trendline
$8.0 remains the main resistance zone for LINK. Bulls have tried to break above the level, but the weak sentiment remains the Achilles’ heel. With the sentiment still not improving as much, Chainlink buyers may find it hard to break past $8 in the near term.
Source – TradingView
Technically, LINK trades below a short-term trendline. On the MACD indicator, momentum is weak, suggesting that a further decline is possible.
The latest weakness has also seen LINK fall below the 20-day and 50-day moving averages. The daily chart indicates that the 20-day MA is initiating a crossover below the 50-day MA. The movement could be a welcome note of a bear market for LINK.
What is the possible price for LINK next?
We sure can’t say LINK is bullish based on the above technical pointers. The likely next bottom zone for the cryptocurrency is $6.0. However, we should consider the zone a reference support level as LINK has previously also shown indecision around $6.8.
Bottomline, LINK is attractive at or towards $6.0 and should be our area of interest. At the $6.9 level, we should be mindful that further decline is possible.
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