Chainlink (LINK) Price Analysis: September 24, 2020.
Chainlink’s price action has been pretty brutal lately as investors faced unusual selling pressure attempts as they began to abandon the ship.
The mass migration of capital from cryptocurrency has caused its price to drop to $ 7.80 from the $ 20 highs reached just a few weeks ago. According to News BTC’s Cole Petersen, this is a significant drop and indicates that the macro market structure of the previously bullish altcoin is beginning to deteriorate.
It’s important to note that LINK has seen similar parabolic advances and disadvantages in the past, but it usually takes some time before it can continue the bullish trend. One trader believes the cryptocurrency is oversold at its current price level and presents a chart showing that Chainlink is currently reaching a critical support level that can be followed with some significant increases in the coming days and weeks.
Chainlink Witnesses More Weaknesses
Chainlink was trading at $ 8.33 at the time of writing. This marks a notable decline from the daily highs of $ 9 set yesterday. Crypto has been facing relentless selling pressure since its price surged to $ 20. The parabolic rise to these peaks was positive and led many analysts to expect it to get even better. However, the selling pressure on the token became enormous after entering this price zone, and LINK has been in decline since then.
One trend to be considered in the short term is the growing open interest for Chainlink on various futures platforms. This could indicate that a big move is coming.
A Strong Return Can Be Made
While talking about the cryptocurrency’s short-term outlook, an analyst explained that Chainlink is approaching a crucial support level that could trigger a bounce. This support exists around $ 8.00 and its upside target appears to be around $ 15.20.
A Healthy Fix
As long as the $ 8 support is held, a correction after such an intense parabolic rise is likely to remain healthy, according to analyst Tony Spilotro. According to statistics, there is no reduction of 80% or more. At least a short-term reversal seems to be a return to higher prices, and Chainlink creates a falling wedge reversal pattern in daily time frames.
There is also a falling wedge in the Relative Strength Index, which coincides with the upward trend continuation pattern. RSI is also at a point where Chainlink is almost as oversold as it was on Black Thursday, but nowhere near the same market conditions.