ChainLink Technical Analysis: LINK/USD falls below $12 as bears take full control
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ChainLink has been on a massive downtrend since the mid-August $20 rejection. Currently, the price has been failing to get past the $12.78 resistance

  • The number of daily active addresses on ChainLink has been steadily decreasing.
  • LINK has been failing to get past the $12.78 resistance level.
  • One analyst predicts the price to fall to $10 levels.
  • The number of daily active addresses on ChainLink has been steadily decreasing.
  • The number of daily active addresses on ChainLink has been steadily decreasing.
  • LINK has been failing to get past the $12.78 resistance level.
  • LINK has been failing to get past the $12.78 resistance level.
  • One analyst predicts the price to fall to $10 levels.
  • One analyst predicts the price to fall to $10 levels.

    ChainLink has been on a massive downtrend since the mid-August $20 rejection. Currently, the price has been failing to get past the $12.78 resistance level. Many believe that LINK/USD’s future price performance is clearly dependent on whether it gets past this level or not. Unfortunately, it looks like we have some bad news for them.

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    Firstly, the number of daily active addresses on ChainLink has been steadily decreasing. This is always a bearish sign.

    Chainlink addresses

    Chainlink addressesChainlink addresses

    Now, let’s look up some technical analysis.

    LINK/USD daily chart

    LINK/USD daily chart

    LINK/USD daily chartLINK/USD daily chart

    LINK/USD has dropped from $12.77 to $11.97 over the last two days as the MACD shows sustained bearish market momentum. The SMA 50 and SMA 20 are about to cross over each other to form a bearish cross pattern. 

    $12.77 to $11.97

    So, if a further bearish movement is indeed expected, then how much further can it fall? According to one trader, he is expecting the rejection to spark a massive sell-off over the next few days, which can see LINK fall to $10-levels.

    LINK/USD monthly chart

    LINK/USD monthly chart

    LINK/USD monthly chartLINK/USD monthly chart

    The LINK/USD monthly chart shows how drastic this bearish movement is. The bears are correcting the price following four straight bullish months. The price has dropped from $15.73 to $11.97 over the month.

    LINK/USD 4-hour chart

    LINK/USD 4-hour chart

    LINK/USD 4-hour chartLINK/USD 4-hour chart

    The 4-hour chart shows that the price has faced rejection at both the SMA 50 and SMA 20 curves. The former curve has crossed over the later to chart a bearish cross pattern. The relative strength index (RSI) is trending in the neutral zone, so further bearish correction is expected. 

    LINK/USD hourly chart

    LINK/USD hourly chart

    LINK/USD hourly chartLINK/USD hourly chart

    The hourly LINK/USD chart is trying to break above the downward trending line. The buyers bounced up from the $11.96 support line and are looking to break above the trending line and touch the $12.12 resistance level. The MACD shows decreasing bullish momentum.

    LINK/USD IOMAP

    LINK/USD IOMAP

    LINK/USD IOMAPLINK/USD IOMAP

    While the analysts are predicting a drop to the $10-level, the IOMAP shows us that the price can drop to $11.64 before it encounters healthy support.  On the other hand, the chances of any upward movement look next to none since the price faces a stack of strong resistance levels.

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    Quotes from Twitter-verse

    $LINK / USD

    Honestly not really looking to great right now, currently not looking like the best time to take a long position at resistance but if PA can flip $13.2 I would be long...

    Maybe I should just listen to the marines and degen long? pic.twitter.com/sbhvGjwG75

    $LINK



    pic.twitter.com/sbhvGjwG75September 11, 2020


     


    From: FXSTREET