- Chainlink price analysis shows price dropped 5 percent to as low as $14.49 over the day’s trade
- Market cap dropped 4 percent while trading volume rose 15 percent
- LINK price stands above $13.72 lower trend line with possibility of a breakout
Chainlink price analysis continues to show bearish signs, as price dropped another 5 percent to move as low as $14.49 over the past 24 hours. During the latest decline that formalised on February 10, LINK has dropped more than 23 percent and continues to decline. Over the day’s trade, Chainlink market cap fell 4 percent while trading volume went up by 15 percent to complete a bearish outlook for the token.
Since November 2021, LINK price has fell more than 60 percent, which is credited to a combination of the larger crypto market struggles, along with a significant losses that Chainlink investors have suffered over the past 2 months. Daily active on-chain users have also dropped massively, from around 16k at peak to a lowly 2.2k by mid-January. However, price still sits above the $13.72 lower trend line and the possibilities of a breakout remain intact if recovery out of the current slump can be formalised.
The larger cryptocurrency market made some headway before the close of market, as Bitcoin gained upwards to move just above $39,000. Ethereum rose 4 percent to sit at $2,740, while Altcoins also showed positive movements. Cardano and Dogecoin gained 3 and 2 percent, respectively, while Ripple rose 1 percent. The biggest market increments were seen with Luna (7 percent) and Solana (9 percent)
According to the 24-hour candlestick chart for Chainlink price analysis, as long as price sits above the $13.72 lower trend line, it is possible to form a distinct breakout from the current slump. The relative strength index shows promising signs for this prospect, sitting just short of the 40 mark to show increasing market valuation. Price still sits just below the crucial 25 and 50-day exponential moving averages (EMAs) at $15.69 and buyers will be looking for movement above this zone where price is expected to consolidate. The moving average convergence divergence (MACD) continues to show bearish highs, which could be shifted by price movement above the $15 demand zone.
Overall, technical indicators on the daily chart look promising enough for LINK to suggest there may be a breakout at the start of the week. Buyers will be looking to place buy-stop orders above $15 and look to take profits at the $18 mark. Conversely, stop loss scenario will be seen around the $13.72 lower trend line and any movement below this mark could put Chainlink further on the sidelines.
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