- Bearish momentum dominates the LINK market, with the potential for a further price drop.
- Increased trading volume suggests positive sentiment despite the temporary decline.
- Technical indicators point to a potential market sell-off; caution is advised.
Bears early in the day pushed Chainlink (LINK) prices down to $7.2535. However, Bulls broke the bear rule and pushed LINK price to a 24-hour high of $7.50, where resistance was solid, leading to a 7-day low of $6.81 (support zone).
Bearish momentum remains in the LINK market at the time of writing, leading to a 2.49% drop to $7.06. If bullish momentum breaks through the 24-hour high of $7.50, the next objective for LINK might be the resistance level of $8.00; if negative momentum persists, the support level of $6.50 may be challenged.
LINK’s market capitalization fell by 2.58% to $3,650,181,507 during the downturn, while the 24-hour trading volume increased by 107.96% to $409,995,112. This increase in trading volume implies that investors are aggressively purchasing LINK on the dip, demonstrating a positive mood toward the cryptocurrency despite the momentary price decline.
LINK/USD 24-hour price chart (source: CoinMarketCap)
Compared to the Aroon down reading of 71.43%, the Aroon up reading of 57.14% indicates that the negative momentum in LINK is greater than the bullish momentum, suggesting a possible downward trend in the price of LINK.
When trading volume is growing, this move signals that a market sell-off may occur as more traders seek to leave their holdings, perhaps adding to the downward pressure on LINK’s price.
With a Bull Bear Power rating of -0.2031421, the bearish momentum in LINK is now greater than the bullish momentum, suggesting that the price may have more potential to fall in the immediate term. If the BBP indicator remains in the negative region, it may indicate that traders are more ready to sell than purchase, indicating that the price of LINK is likely to fall.
LINK/USD chart (source: TradingView)
On the LINK/USD price chart, the Vortex indicator has produced a bearish crossing by falling below its signal line with a value of 0.9898. This action indicates that bear force is gathering momentum and that the LINK/USD price may continue to fall in the near future.
As a consequence, bearish traders on LINK/USD may consider starting short bets or liquidating existing long ones to minimize future losses.
The technical rating display of a “strong sell” adds more caution to the scenario and may foreshadow a future market slump, making risk management measures even more important.
LINK/USD chart (source: TradingView)
LINK faces bearish pressure, but aggressive buying on dips and high trading volume show positive sentiment. Bulls need to break $7.50 for a rally towards $8, while bears aim for $6.50 support.
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