- Chainlink price prediction expects the price to drop to $12 in the next few days
- Bullish activity dissipating
- Bears control the day so far
- Volatility declining with bearish movement
- Chainlink market seems short-term bearish
Chainlink (LINK) has been thriving over the last couple of months as LINK popularity remains on the rise. The price, however, doesn’t seem to be following that trend.
Following the Bitcoin price correction on the 25th of November 2020, LINK price reached its All-Time-High (ATH) of $6 but has since been unable to recover well. Since that point, similarly to Polkadot, Chainlink sees short-term bearish action ahead with Christmas less than two weeks away.
At the time of writing, LINK price is $12.51 – down 0.67 percent on the day’s opening price of $12.93.
Use the oscillator below to check what role LINK might play in your portfolio.
The 1-Day chart aids to the overall direction of this price prediction piece as the day remains bearish for LINK price.
LINK volume in trade has been abysmal through December and this reflects closely in LINK price movement. The bearish activity seen in December has met bullish retaliation, but overall, the bears seemingly have short-term control of the market.
The Relative Strength Index (RSI) shows a very minimal range of volume or price fluctuations as LINK remains at an RSI level of 48. This is further supported by the Historical Volatility indicator (HV) that shows a reduction in volatility as price becomes bearish. This suggests LINK prices are expected to fall further as the bears see little volatility resistance.
Observing the 1-Week chart, we can see more clearly that LINK price has been mostly swayed by bearish movement in the last three weeks. This has in effect created a stagnation in the price increases seen into mid-November 2020.
The 1-Week chart depicts a bearish market ahead. Bearish activity correlates directly with volatility reduction, while RSI levels continue will little fluctuation. If this pattern continues, prices will likely see $12 before any bullish action occurs.
On the volatility chart we can see the Historical Value Index (HV) levels continuing to decrease as LINK price decreases.
If this correlation persists, this volatility pattern would suggest the bears have the upper hand towards Christmas.
This price predictions conclusion is that LINK price will drop to $12 in the next two or three days before any bullish action is seen. This prediction is based upon weak LINK recovery seen into December, the common trend of the crypto market, and the indicators seen throughout.
As volume remains low, the Bollinger Bands (BBs) show LINK price consistently below the BB Basis mid-line for almost the entirety of December thus far. If this descending trendline continues, LINK price might not stabilize at $12 – potentially falling even further to $11.5 and below.
If this pattern continues short-term, this may be an optimal point for traders to buy while prices remain low.
Please ensure you do not trade more than you are willing to lose.