Price Analysis

ChainLink Price Finds Support Near $8 yet Uptrend Will Remain Tough Going

It has been a rough week for the altcoins on the market. No single asset has noted any real prominent momentum. ChainLink price watchers will not be pleased with how things are going these days either. 

ChainLink Price Drops Hard

In theory, not too many people will be surprised to learn the Chainlink price has been on a strong decline. After hitting its all-time high of $19.83 in mid-August of 2020, the downtrend has not relented in the slightest. In the past month, a net loss of nearly 47% has been recorded. This explains why the ChainLink price now sits close to $8, instead of $19.

The ongoing decline is not necessarily slowing down either. Mounting deficits in USD, BC, and ETH value show the market remains incredibly volatile and difficult to predict. A bottom will be found eventually, but for now, there is no indication that this is the bottom just yet. The coming days will prove rather interesting  for LINK in different ways. 

Social Sentiment Goes Deep Red

It is not uncommon to see social momentum decrease for altcoins, especially after a near 47% loss in value. For ChainLink, the core technology remains sound, but the overall sentiment seems to have soured a bit. There’s less social volume, engagement, and dominance to speak of. All of these aspects can be overcome, but it will heavily depend on the LINK marines to make things happen. 

With more and more services integrating ChainLink technology, it is a matter of time before things improve again. Whether that will impact the LINK price, is a different matter. Anything is possible, yet doubling in price again in the near future will be a major challenge. 

Still Top 3 for Liquidity

One facet that can influence the ChainLink price relatively easily is the overall LINK liquidity. ChainLink still ranks in third place, right behind Bitcoin and Ethereum, and well ahead of XRP. Liquidity is a good thing to attract new investors, but it can also yield more market swings in the other direction. 

In terms of the overall transaction volume,  things look a bit different. LINK has a reported volume of $137 million. Not terrible, by any means, but well behind NEO, Dai, XRP, Cardano, and USDC. It is still ahead of LTC, TRON, BCH, and EOS, though. An interesting metric always worth keeping an eye on. 

LINK/USDT Technical Analysis

Judging by the technical indicators on the LINK/USDT chart, there may not be much recourse for the ChainLink price right away. A small Bitcoin nudge can lift all markets up, but there is still a lot of negative sentiment toward this Ethereum token. This is evident when looking at the MA20, which remains well below the MA50. It may even cross with the MA200 eventually. 

Although the Bollinger Bands show minor signs of narrowing, the bearish pressure isn’t relenting just yet. Even though the RSI is clearly in oversold territory, that alone will not bring the price to $9 and higher again. The remainder of the week will prove crucial, although it is unclear where things will head next. 

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JP Buntinx

JP Buntinx has been writing about cryptocurrency since 2012. His interest in crypto, blockchain, fintech, and finance allows him to cover a broad range of different topics.

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JP Buntinx

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