Chainlink (LINK), the cryptocurrency known for its decentralized oracle network, has been facing a challenging period in recent days as it grapples with a persistent bearish trend. Despite some positive developments in the crypto space, LINK’s price has been on a downward trajectory, failing to capitalize on favorable news.
One notable event that failed to provide the expected boost to LINK’s price was the successful completion of Swift’s experimentation with Chainlink. Swift, the interbank messaging giant, had conducted trials involving Chainlink, which created a buzz in the crypto community.
However, rather than propelling LINK’s price to new heights, it primarily generated increased social volume and sentiment among traders.
Chainlink Short-Term Support Zone Crumbles
Looking at the price charts in a new analysis, it becomes evident that LINK was unable to maintain a short-term support zone that had been established by bullish investors just last week. The weekend witnessed a decline in prices and a surge in bearish pressure, undermining the previous support.
On the 4-hour chart, a bearish order block was clearly visible around the $6.2 zone, marked in red. While Chainlink prices had briefly surged past this level on September 7 and even retested it as support, ultimately flipping it into a bullish breaker block, the bulls struggled to sustain the momentum. The persistent sell pressure over the past few weeks ultimately pushed LINK’s value below the critical $6.2 mark.
Bearish Indicators Point To Further Losses
As of now, Chainlink is trading at approximately $5.91 according to CoinGecko, marking a 0.6% decline in the last 24 hours and a 1.2% dip over the past week. Both the price action and technical indicators seem to align with the possibility of LINK facing more losses in the near future.
Moving forward, the next significant support levels to watch are at $5.7 and $5, as indicated by the higher timeframe price charts. It is increasingly likely that LINK may experience a drop to these levels in the coming days and weeks.
LINK market cap currently at $3.2 billion. Chart: TradingView.com
LINK Whales Accumulate Amid Bearish Trend
Despite the prevailing bearish sentiment, a separate report highlights a noteworthy development. Chainlink whales, holding between 10,000 and 1,000,000 Chainlink tokens, have taken advantage of the recent dip in the asset’s price, anticipating a future recovery in the altcoin’s value.
Typically, such whale accumulation tends to generate a positive sentiment among traders, as it fuels demand for LINK across various exchanges. However, it remains to be seen whether these bullish catalysts can ultimately break LINK free from its current downward trend, as social metrics continue to outshine price performance in the Chainlink ecosystem.
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Featured image from Broken Chain Photography