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Chainlink Seems Weak, Flashes Signs Of Bearishness: Analyst Opinion

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Stefan

Chainlink seems weak and heavy with signs of bearishness after witnessing strong selling pressure over the past few days. LINK was unable to mirror the gains that were set by Bitcoin so let’s see what the price analysis looks like for this asset in our Chainlink crypto news.

The losses struck a huge blow to the technical outlooks and they could even open the gates for more downside pressures in the upcoming weeks and months. Looking at the technical outlook probabilities, one analyst said that Chainlink seems weak and awaits for the coin to see further downsides unless the bulls step up and reverse the current downtrend. He noted that the cryptocurrency is looking weak and heavy as it trades close to the lower boundary of the mid-term range which was established over the past few months.

Image Courtesy of Loma. Chart via TradingView.

There’s one strong support level that exists below the Chainlink trading zone. The reaction of the level could illuminate the technical outlooks as the break below could spark a capitulatory drop similar to the one seen at the start of the month when LINK hit lows of $9.00. At the time of writing, Chainlink traded down by 4% at a current price of $11.63 which marks a decline from the recent high of $13.20 which was set over a few days ago. The trading range which LINK established over September was set at $11.20 and $13.20. The cryptocurrency posted strong responses to these levels over the past few days which made it approach the bottom faster.

link 24-hours
LINK 24-hour Chart (Source: Coingecko)

If the $11.20 level doesn’t hold as a support level, a break below could spark a capitulatory drop which causes the cryptocurrency to see serious losses. The decline could be similar to the one in September when Chainlink dropped to lows below $9.00 before it rebounded. While looking at the Chainlink market structure, one analyst explained that he expects Chainlink to see even more downsides unless the bulls step up and reverse the ongoing downswing. He is looking towards BTC for insight where the LINK sentiment could trend next:

 “Link Marines better step in and save LINK soon. This…looks weak and heavy atm. If Bitcoin trips, even a little bit, I think Chainlink goes back under $10 again and stays there for a bit.”

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