Chainlink Price Prediction: Could LINK Provide Its Biggest Recovery After Slipping To $ 18?

    • The downward trend in Chainlink price continues as the MACD stays below the zero line.
    • The RSI supports the bearish outlook on the 12-hour chart.
    • LINK needs to hold above $ 14 to break the bearish run and continue the uptrend.

Chainlink price has more than halved from the all-time high of $ 54. At the time of writing, LINK traded hands at $ 16.85 while CoinGecko’s Data reveals that the live price feed’s oracle token has lost 5.8% in the past 24 hours. Despite the massive declines, the bulls could turn the tables to hit a new record high near $ 100 before the end of 2021.

Can Chainlink’s bearish outlook be halted?

The 12-hour chart suggests a weakening bullish outlook. However, the bears appear determined to push Chainlink price anywhere near $ 10, a support that came in handy during the May crash. The Moving Average Convergence Divergence (MACD) indicator confirms this bearish narrative. It’s worth noting that the trending momentum indicator stays below the center line (0.00).

The MACD is a trend following momentum indicator that is used to confirm trading trends. However, it is occasionally used by traders to identify overbought and oversold zones. It is an indicator that triggers technical signals when the MACD line (blue) crosses the signal line and gives a buy signal. On the other hand, the trend sends a sell signal when the MACD line falls below the signal line, as shown in the following Chainlink chart.

Additionally, on June 21st, we saw LINK price make a brand new high as it broke short-term resistance of $ 22. However, the MACD indicated that momentum does not confirm the reversal on the upside. The MACD continued to decline as Chainlink price struggled to gain support around the $ 16 mark. If the price feed oracle token does not reach this support, the MACD will continue its bearish deviation from the signal line, confirming that LINK will not reverse its downtrend and is still in the sell zone.

LINK / USD 12 hour chart

The Relative Strength Index (RSI) supports the ongoing downtrend on the 12-hour chart. As the RSI drops sharply towards the oversold zone, Chainlink’s declines could deepen. Note that the RSI is a trending indicator that measures the strength or power of the bulls or bears, depending on how steep the slope is. The RSI is showing a steep shift towards the oversold area, suggesting the bears are stronger and the bearish outlook could be extended or resumed in the short term.

At the time of writing, LINK was struggling to secure support at $ 16. A close of the day below this level would trigger further sell orders and push LINK towards the next support level at USD 14, which would go beyond the USD 18 drop recorded at the beginning of the week.

The declining outlook is not just reserved for Chainlink, as the entire crypto market continues to decline and demand-side pressure for Bitcoin eases (BTC), amid regulatory fears and tough crackdown on Bitcoin miners by the Chinese government. This caused Bitcoin to drop below the USD 30,000 support level earlier this week – a support it has held for a long time – and we saw it drop to its lowest level since January.

On the other hand, the introduction of Chainlink 2.0 could raise the price to a higher level. The Chainlink 2.0 update aims to create hybrid smart contracts that improve access to off-chain resources. In addition, the updated system is expected to smooth out oracles to resolve off-chain disputes. The main advantages of the new update for the Chainlink system are security and scalability.

Chain link live chart

In general, the analyzes give a positive indication that the fundamentals of the project are solid and that Chainlink has remained proactive in the development and launch of products over the past year. The signs point to the LINK / USD Price pulling past ATH to trade between $ 80-100 over the next several years. Therefore, the current dip could be the best time to buy the token.

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