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Chainlink’s LINK is correcting after facing a resistance
- The weakness heightened after the Federal Reserve earmarked further rate increases
- LINK’s weakness could continue until the token finds support, potentially at $7.4
Chainlink’s LINK/USD was rejected at $9.5 on August 12. That is the same level that rejected the token during the June surge. The decline could be due to profit-taking activity as there was no immediate trigger for the selloff. Following the latest rejection, LINK has registered a losing streak over the past one week. The token now trades at $8.09.
While most cryptos have been recovering lately, a major thorn now is how the Fed reacts to inflation. In a Wednesday’s statement, officials expressed the sentiment that inflation remains an issue. They called for further rate hikes. Crypto markets reacted by turning bearish, with LINK crashing by more than 3%. The depressed sentiment elicits more bear flags for LINK since the correction is yet to hit suitable support.
Chainlink’s technical outlook points to further correction
Source – TradingView
From the daily chart, LINK could find support at $7.4. The cryptocurrency is bearish after losing for the past five days. The momentum indicator crossing below the moving average points to a bearish view. LINK has also broken below the crucial 21-day MA, reinforcing short-term price depreciation.
If LINK breaks below $7.4, bears will take control and push the token back to $6. The token will have breached the 50-day MA and would welcome an accelerated selloff. We consider this scenario less likely unless the crypto sector experiences a prolonged downturn.
Concluding thoughts
Chainlink token could continue to fall further on a broader wave of crypto correction. The most likely zone for bullish reversal is $7.4. Investors should monitor price action as further decline could see it touch $6.0.
The post Is Chainlink’s losing streak now over, or will bears remain in control? appeared first on CoinJournal.
Ndasi Tata is a Bitcoin entrepreneur from Cameroon, who holds an M.Sc in Blockchain and Digital Currency from the University of Nicosia. He is an advocate of Bitcoin in Africa and uses various social media platforms to promote his ideas and ventures. Tata has a background in state journalism and has established himself as a significant figure in the Bitcoin community.
