Chainlink‘s (LINK) price has been in a downtrend since its peak in March. Despite a 7% rise during the 2024 Bitcoin Conference week, it lost all gains within three days. In the last 24 hours, LINK’s price dropped by 3.9% to $12.82. This decline is due to market fluctuations following the Federal Open Market Committee (FOMC) meeting’s decision to keep interest rates unchanged. Analysts warn that Chainlink’s LINK needs to cool down before reaching the much-anticipated $16 level.
Chainlink Technical Analysis
LINK‘s price is currently moving within a descending channel and trading below the 50-day (green line) and 200-day (black line) exponential moving averages (EMAs). This indicates a bearish momentum. However, a descending channel formation often signals a bullish reversal.
The main support levels for Chainlink are set at $11.4 and $10. These levels correspond to the lower boundaries of the descending channel and are historically significant support points. The key resistance levels for price increase are $13.92 (50-day EMA), $14.78 (200-day EMA), and $16.00.
On June 28, the Chainlink price chart formed a death cross on the daily timeframe, indicating a potential start of a downtrend. The RSI indicator is neutral at 48.45 but slightly trending downwards, suggesting continued short-term bearish pressure. The CMF indicator is at 0.07, indicating positive money flow and limited buying pressure.
Price Prediction for Chainlink
If Chainlink’s LINK price falls below $10 and fails to reclaim this level, it will signal weakness, invalidating the bullish thesis within the descending channel. In this scenario, the price is expected to find support around $8.11.
IntoTheBlock‘s data shows that Chainlink whales have been accumulating heavily over the past two months. Whale inflows are larger than outflows, indicating potential preparation for a price increase. According to Coingecko’s data, the altcoin‘s trading volume has slightly increased by 4% and remained generally stable. A significant increase in trading volume is needed to confirm an exit from the descending channel. Without a volume increase, LINK’s price is expected to continue its downtrend.
