Bear Market Bites: Chainlink Loses 10%, Further Downturn To $6.80 Feared

Christian Encila

11 months ago

3 mins read

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Major cryptocurrencies like Bitcoin are plunging to four-month lows as the cryptocurrency market continues its summer meltdown. A major participant in the decentralised oracle network market, Chainlink (LINK), has taken a particularly severe beating, plunging 25% since the start of June. However, is this a chance to purchase or the beginning of a far sharper decline?

This Chart Pattern Looms Large

Technical experts are closely examining Chainlink’s chart, paying special attention to the infamous “Head and Shoulders” pattern. With two minor peaks flanking the primary one, this pattern frequently denotes a turn in the trend from bullish to bearish. A break of the neckline, the support level that is presently at $12.70, according to analyst Ali Martinez, might lead to a big decline.

#Chainlink $LINK faces a potential 45% price correction if it falls below $12.70! pic.twitter.com/8NGwMzEIhR

— Ali (@ali_charts) July 4, 2024

Martinez cautions that if LINK drops below $12.70, there may be a chain reaction sell-off. This may cause the price to plummet by an astounding 45% to $6.80. Fibonacci retracement values, a technical indicator of possible zones of support and resistance, add to this pessimistic view. Martinez’s goal price of $6.80 is exactly in line with the Fibonacci level of 0.786, which supports his prediction.

Bearish Sentiment Grips The Market

The general pessimistic mood that permeates the cryptocurrency market is adding gasoline to the fire. An indicator of market mood, the Fear and Greed Index, is now at a frightening 26, far into “Fear” zone. The trading behaviour of LINK reflects this worry. The price is fighting to hold above the crucial level of $12.70, and a clear breach below it might hasten the sell-off.

A Glimmer Of Hope: Oversold Territory And Price Prediction

But there’s still a ray of hope. Another technical signal, the Relative Strength Index (RSI), indicates that LINK may be oversold. At 28, the RSI is approaching “oversold” territory. Given the frequency of brief market corrections for oversold assets, this may indicate a possible short-term rebound.

LINK is now trading at $12.4. Chart: TradingView

Fascinatingly, some analysts disagree with the general pessimistic outlook. By August 5th, the price of LINK is expected to have increased by 52.73%, reaching a wholesome $18.97. Technical analysis presents a negative image, but our forecast provides a counterbalance by emphasising the inherent unpredictability of the cryptocurrency market.

The Road Ahead For LINK

In the end, it’s unclear what the future holds for Chainlink. Technical signs beg for caution, yet some experts continue to see things positively. For Chainlink, the upcoming weeks will be very important. Will it resist the negative rumours and make a rebound, or will it give in to the pressure of a more significant correction?

Featured image from Coldkeepers, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.