Chainlink (LINK) price is still trading inside the same trading range that started developing a year ago. After a good rally in April 2023, LINK crypto appears to have flipped bearish. Our analysis reveals that the price has broken its support and may target more downside in the coming days.
Since the start of this week, Chainlink price has remained red. After a slight bounce on Wednesday, the price action turned negative once again on Thursday. This translates into an overall weekly loss of 6.54% and the fourth consecutive week of a downtrend.
LINK crypto is currently more than 26% down from its yearly high. The native asset of the Chainlink oracle network has been showing a very weak price action for the past few weeks. In the coming days, there is a potential 13% downside for the cryptocurrency.
Crypto markets rallied on Wednesday as the April 2023 CPI data showed the lowest inflation rise in 12 months. Nevertheless, the gains got wiped off today as the BTC price failed to hold the $28,000 level. Chainlink price is still trading slightly above its weekly lows.
The following LINK crypto chart reveals that the price has broken below the 200 moving average on the daily timeframe. The 200 MA indicator works as a line in the sand for many long-term investors. Therefore, this breakdown adds to the bearish confluences.
Furthermore, Chainlink price prediction has flipped bearish due to a lower low on the daily chart. This validates the bearish market structure, which will remain intact till a daily close above $7.60. The most likely scenario is a retest of the $5.55 range lows.
I’ll keep sharing my updated LINK price analysis in my free Telegram group, which you are welcome to join.
This post was last modified on May 11, 2023, 09:32 BST 09:32