Chainlink (LINK) price has experienced a notable decline in its market price, aligning with broader market downturns. Currently, the LINK is trading below key support levels, indicating a bearish trend. Despite efforts, Chainlink faces challenges in mounting a recovery, as it remains affected by the prevailing negative sentiment in the cryptocurrency market.
In recent weeks, most cryptocurrencies have experienced significant price drops. Top digital currencies, such as Bitcoin, are trading under the $58,000 mark. Meanwhile, Ethereum has fallen below the $2,600 threshold. These downturns are influencing declines across other altcoin markets, including Chainlink.
Chainlink Price Analysis: Is a Recovery Possible Amidst Market Downturns?
At the time of writing, the LINK price hovered at $10.67, a slight decrease of 0.47%. Over the past day, LINK has struggled to recover from recent lows, trading in a range between $10.27 and $10.78.
According to CoinmarketCap data, the cryptocurrency experienced a significant 29.25% increase in trading volume within the same 24-hour period, indicating heightened interest from traders amidst its bearish trend.
The Chainlink price may find initial support at $10.00 amid declining market sentiment. If the downtrend accelerates, it could fall further to $8.00. In the most adverse conditions, a drop to $7.00 is conceivable.
Is There Hope for a Reversal Soon?
The 4-hour technical indicators for Chainlink price present a bearish outlook. The Moving Average Convergence Divergence (MACD) indicator is in bearish territory. The MACD line is below the signal line and has descended, reinforcing the bearish sentiment among traders.
Moreover, the histogram, which visualizes the distance between the MACD line and its signal line, shows increasing red bars, indicating that bearish momentum is strengthening.
Chainlink Price chart| Source: TradingView
In a recent analysis of Chainlink token positions, data from IntoTheBlock reveals significant insights into how holders are distributed across various price thresholds. Currently, the majority of LINK, totaling 558.18 million LINK valued at approximately $5.94 billion, is ‘In the Money’, representing holders who purchased the token at a price lower than the current market price of $10.64.
This group constitutes 55.82% of total holders. In contrast, 397.45 million LINK, worth around $4.23 billion, is ‘Out of the Money’, indicating holders who bought at higher prices, making up 39.74% of the distribution. The remaining 4.44%, or 44.38 million LINK, is ‘At the Money’, with a purchase price close to the current market value.
Source: Into The Block
Conversely, a resurgence in bullish behavior could signal a move into a positive market phase. This uptick could push the Chainlink price prediction past the $15.00 resistance mark. Continued momentum might propel the price to $20.00. With increasing bullish pressure, the cryptocurrency could potentially achieve a high of $30.00.
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