front pageAltcoinsBear market signal predicts a 60% decline, link buying opportunities emerge

Bear market signal predicts a 60% decline, link buying opportunities emerge

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There are some bullish signs for LINK price, which could bring your ex back into your life, but in the short term, the outlook for the token appears bearish. According to CoinShares’ Digital Asset Fund Flow Report, Chainlink token investment vehicles have received outstanding inflows in 2024, second only to Bitcoin and some hybrid token funds. The report notes that Chainlink has caught the attention of investors several times, probably because of its partnerships and updates. LINK price has been on a bullish run since May 15, surging by nearly 36% to reach a daily high near $17.45 on May 21 before some of the gains were wiped out due to profit-taking. Chainlink token price surged again by nearly 8% on May 24 to reach a daily high near $17.8 before falling back. LINK has been on an uptrend since mid-June 2023, peaking in March 2024, and has now entered a consolidation phase in the $15 to $18 range. Nonetheless, indicators suggest a short-term decline is likely. The Chainlink coin has been trapped in a parallel channel pattern and the LINK price is currently trying to break out of the resistance of the channel. Fibonacci retracement levels highlight potential reversal points. LINK tested the 0.5 Fibonacci level near $13 and bounced back, suggesting this is an area of support. Resistance near the 0.236 level ($17.2) and $20.5 could limit upside. LINK’s short-term outlook remains cautious due to the channel resistance, which could force the coin to test support near $13, which would negate any gains LINK could make beyond 24%. The Relative Strength Index (RSI) is hovering around 70, although it is currently in a neutral state, scoring 65.4 on the daily chart. An RSI above 70 suggests overbought conditions and would precede a price correction, suggesting a short-term pullback. Considering these indicators, LINK could drop towards the $13 price level. The red arrow on the chart also indicates a possible decline. If the bearish pressure persists, this retracement could extend to the $12.9982 level (0.5 Fibonacci). Although ChainLink’s long-term trend remains bullish, the short-term outlook appears to be bearish. Meanwhile, LINK price faces another bearish risk from a pattern in the technical chart known as a “descending triangle.” The descending triangle is widely considered by market analysts to be a bearish continuation signal. The configuration features a downward sloping upper trendline that gradually makes lower highs for price action, and a flat lower trendline that serves as a consistent support level that price has a hard time breaking. Furthermore, the pattern suggests that selling pressure is strengthening and continues to overwhelm buyers, leading to consecutive weaker rallies. In this setup, potential price targets are often measured by the maximum height of the triangle at its widest point. Therefore, confirmation of this bearish pattern could cause Chainlink coin to drop more than 60% to reach a projected price target near $6.9. The bullish cues favor LINK’s price in the long term, but the short-term bearish risk could present a buying opportunity for LINK traders.

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