For several days now, Chainlink (LINK) has been fluctuating between $10 and $11. This movement is unexpected given the recent significant advancements within the project.
However, with Chainlink bears currently in control, there are reasons to believe that the altcoin may struggle to respond positively in the near future.
Chainlink Bears Dominate
As reported by IntoTheBlock, the Chainlink Bulls and Bears indicator currently supports the bears. In this context, the bears represent addresses that are selling at least 1% of the overall trading volume, while bulls do the same.
When bulls surpass bears in volume, the asset’s price is likely to rise. Yet, as of now, Chainlink bears have offloaded over 500,000 more tokens than bulls have purchased.
Considering this, it appears highly improbable that LINK’s price will rise, even though some analysts argue that the token should be valued at no less than $15.
Read more: How to Purchase Chainlink (LINK) With a Credit Card: A Comprehensive Guide
Furthermore, the In/Out of Money Around Price (IOMAP) data indicates that LINK could continue to face resistance despite multiple attempts to break through the $12 mark. The IOMAP provides insight into the number of addresses and volume holding a token in either realized profits or losses.
If the volume of losses exceeds that of profits, the nearest cluster is likely to act as a key resistance point. Conversely, a higher volume of profits will create a significant levels of support.
As illustrated, major resistance is indicated between $12.47 and $12.82. Currently, nearly 18,000 addresses hold more than 100 million LINK tokens in this range. Therefore, if prices approach this zone, some addresses could reach breakeven, potentially driving the price lower.
LINK Price Forecast: Potential Lower Lows
On the daily chart, Chainlink is encountering significant resistance around $12.70. Additionally, the Exponential Moving Average (EMA) implies that the altcoin could dip below its current value.
As depicted below, both the 20 EMA (blue) and 50 EMA (yellow) are close together, indicating indecisiveness among traders. Nonetheless, it appears that Chainlink bears have the advantage.
Read more: Chainlink (LINK) Price Forecast 2024/2025/2030
In light of the current circumstances, LINK’s value may fall below $10. However, the bulls have the potential to prevent this downturn. For this to happen, Chainlink bears need to step back. Should they do so, the token could recover and reach $15.25.
Disclaimer
In accordance with the Trust Project guidelines, this price analysis piece is intended for informational use only and should not be interpreted as financial or investment guidance. BeInCrypto strives for accurate and unbiased reporting, but market conditions are prone to fluctuations without prior notice. Always perform your own research and consult a professional before making any financial choices. Kindly note that our Terms and Conditions, Privacy Policy, and Disclaimers have been revised.
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