- Chainlink price prediction is very much in sync with broader crypto market
- LINK/USD price is undergoing notable consolidation with a downward bias
- Price is oscillating between Bollinger Bands with an inherent weakness on hourly charts
- Aggregated market fundamentals are driving LINK/USD price action
The primary factor driving the market this week is the overall crypto market sentiment. Most of the coins, including BTC, are struggling to make headway and are trading within a narrow range. The multi-week uptrends are in danger as the coins are stuck in a tight range which threatens to derail the uptrend on account of stagnation.
Investors will dump altcoins at the first sign of a meltdown since riskier assets drop quick. BTC volumes are also not something to write home about. The pressure on the LINK/USD pair is visible on the hourly charts, which show renewed uncertainty. If the stagnation continues, there is a strong chance that it will culminate into a downtrend.
The entire crypto market is engulfed in a stagnation where coins are undergoing zig-zag price action. The technical weakness is inherent in the charts as key support levels have been broken. Also, the resistances above have been missed repeatedly signalling more weakness in the coming days.
Lately, Chainlink price prediction has been closely mimicking BTC/USD price movements. As BTC struggles to cross $20,000, crypto enthusiasts are getting panicky, which can certainly result in panic selling. If the selling pressure exaggerates, the LINK/USD can break below $11.60 level and start a bearish journey downwards. As BTC confuses traders and investors, the fear can percolate to altcoins like ETH and LINK.
LINK/USD 4-hour chart – Confusion prevails as pair stagnates
The Chainlink price prediction is getting murkier as the pair is all set to reach $12.0 support. On the hourly charts, the pair has been well supported at $12.25 level, and LINK is stabilising around this level. The RSI at 42 signals that further downside could happen anytime. MACD is also tilting towards the negative territory as the pair gravitates near the lower support levels.
The ascending price channel on the daily charts may falter soon if the pair closes below $12.25 support. As LINK depreciates in comparison to BTC, the pair will lose the moment investors flee out of altcoins market. So far, the selling pressure is muted, and the pair have not seen excessive bearish patterns on the hourly charts. The bearish price triangle is emerging on the hourly charts as the pair looks for the volume-based bull run to reclaim higher levels.
The stagnation phase has not yet turned into accumulation since the repeated break below crucial support levels reflects a non-existent buying. Therefore, Chainlink price prediction remains murkier.
LINK supply decreasing on wallets – More weakness in the store?
Chainlink price prediction is already on the verge of a bearish entry as the price is declining steadily. The weakness is evident due to the declining supply of LINK/USD in the wallets. Until the traders reach note a decisive movement in the price, they won’t hesitate to exit altcoins such as LINK. However, the new addresses being created are rising fast – a glimmer of hope in an otherwise mute market.
Diverse distribution among token holders shows that the LINK is now getting fundamentally more vital. Whether or not that translates into a higher price remains to be seen. Declining wallets also indicate accumulation to some extent. It may also indicate renewed buying from the retail investor. If that is true, expect LINK/USD to move past $13 resistance in the short term.
At the time of writing, the LINK/USD pair is trading at $12.53. It is barely holding onto the key support level at $12.50 and trading within the safe Bollinger Bands. In the past few hours, the pair has bounced well from the lower support level at $12.10, helping it climb to safety.
There is serious support lined up at $12.00 and then at $11.70. Both levels have defended any immediate fall in the near term. Fundamentally, the percentage of LINK in investors portfolios is on the rise. The current stagnation is partly due to the uncertainty prevailing in the broader crypto market. As the number of new LINK investors rises, the Chainlink price prediction will certainly enter the bullish zone soon.
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