BTC price continues to close above $60,000, boosting altcoin investors’ confidence. If the weekly close remains at current levels, hopes for a rebound may increase. In September, both interest rate cuts and the end of prolonged boring movements could drive prices up. What about the short term?
Chainlink (LINK)
In the short term, the possibility of a decline for LINK Coin is becoming evident. Data from CryptoQuant shows a potential for decline despite a 10% price increase. This is because LINK Coin reserves on exchanges have reached their highest level since August 4. This indicates that more LINK Coins are available for sale as the reserves on all exchanges have increased.
Long-term investors move their assets to cold wallets when they want to hold them. A decrease in exchange reserves signals a rise for BTC and altcoins. For example, BTC exchange reserves have dropped by more than 10% annually, reflecting the strength of accumulation.
Social dominance data compiled by Santiment also indicates a potential peak for LINK Coin. Typically, social dominance signals FOMO at the peak region, which historically supports the potential for a price decline.
LINK Coin Price Prediction
The chart also signals a decline for LINK Coin. A bearish flag is becoming evident on the daily chart. This formation appears when three trend lines converge. The flagpole formed by the initial downtrend and the lines representing support and resistance during the consolidation phase complete the flag. Considering the initial bearish signals, a downward breakout is possible.
The target for the formation is below $10, potentially reaching a bottom of $9.95. If buying pressure strengthens and BTC continues to test $62,000, we could see a reversal. In this case, the price is likely to return to the resistance at $13.1.
BTC price was near $60,500 at the time of writing, and altcoins have generally halted their gains. Powell will make important statements in the coming hours, and his Jackson Hole speech is expected to increase volatility.
