Chainlink (LINK) has experienced a 14% decline in value over the last week, reflecting the overall downturn in the market. This significant decrease has caused Chainlink’s price to drop below vital support levels, hindering its ability to gain upward traction without fresh demand entering the market.
This situation underscores the challenges LINK holders may face in achieving profitability in the upcoming weeks.
Chainlink at Risk of Losing Crucial Support Levels
A review of Chainlink’s price action on a daily chart indicates that it is now trading below its 20-day exponential moving average (EMA). The 20-day EMA reflects the average price of an asset over the preceding 20 trading days, giving more importance to recent prices, thus proving helpful in recognizing potential reversals or trends in the price movement.
When the price dips below this important moving average, it indicates that the short-term trend has shifted downward, increasing the likelihood of further declines in price.
Read more: How to Purchase Chainlink (LINK) Using a Credit Card: A Comprehensive Guide
Moreover, Chainlink’s price is set to fall below its Ichimoku Cloud, reinforcing its bearish outlook. The Ichimoku Cloud assesses market trends, momentum, and key support/resistance levels. A price drop below the Cloud indicates a bearish phase, showing that downward momentum is taking hold.
Under these circumstances, the Cloud acts as a resistance barrier, complicating any attempts at price recovery without a significant uptick in buying pressure.
LINK Price Outlook: A Buying Surge is Essential for Recovery
The Aroon Down Line for LINK, which measures the intensity of its downtrend, currently registers at 92.66%, affirming the token’s significant price drop.
A reading close to 100% indicates that the asset has consistently experienced lower highs, signifying a robust downtrend. Should this trend continue, Chainlink’s price risks a further drop of up to 27%, potentially revisiting its low of $8.12 from August 5.
Read more: Chainlink (LINK) Price Projections for 2024/2025/2030
Nonetheless, if the altcoin witnesses an increase in buying interest, breaking above its Cloud and 20-day EMA, Chainlink’s price could rise towards $19.73.
Disclaimer
This price analysis article serves informational purposes only and should not be interpreted as financial or investment advice per Trust Project guidelines. BeInCrypto strives for precise and impartial reporting, but market conditions may change without prior notice. Always perform your own research and seek professional guidance before making any financial decisions. Please note our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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