Up until last week, Chainlink (LINK) was one of the best-performing cryptocurrencies in the market. The asset had rallied around 500% since the March lows.
After a slowdown in the altcoin market’s momentum, LINK has slumped. It is now down approximately 20% from its all-time high price set last week.
Analysts think that the asset is primed to move lower as the technical case remains in the hands of bears.
After an exponential rally, Chainlink is finally experiencing one of its first major pullbacks after last week’s major high near $9. As of the time of this article’s writing, the asset trades at $7.44, approximately 17% below that high.
While the asset’s holders have yet to capitulate, there remain technical indicators that suggest the asset is primed to slide lower in the weeks ahead.
Chart of Chainlink’s price action against the U.S. dollar over the past two weeks. Chart from TradingView.com
Analysts Agree That Chainlink Room To Fall
A Telegram channel that tracks the instances of the Tom Demark Sequential just noted that Chainlink just flashed a bullish sign. Against BTC, the cryptocurrency on its weekly chart just printed a “sell 9” candle according to the sequential.
This is important for traders as “9” candles, as per the TD Sequential, are often seen at an inflection or reversal point in an asset’s trend. That’s to say that this latest signal suggests the altcoin will see a strong correction against Bitcoin.
Chart of LINK’s macro price action (against Bitcoin) from a Telegram channel tracking the Tom Demark Sequential. Chart from TradingVIew.com
The expectations of a reversal in the LINK market against BTC have been echoed by Josh Olszewicz.
As reported by Bitcoinist previously, the analyst identified four factors backing his bearish sentiment. They are as follows:
The pair’s RSI reading on the one-day chart has reached an all-time high around 90.
LINK rallied close to an “R5” yearly pivot resistance.
The asset reached the top of a pitchfork extension pattern.
A bearish divergence formed between the 12-hour RSI and the price action.
Chart of Chainlink (LINK) against Bitcoin since mid-2018 from trader Josh Olszewicz (@CarpeNoctum on Twitter). Chart from TradingView.com
A Strong Fundamental Trend
Chainlink’s fundamentals remain strong in spite of the bearish technical analyses recently shared by top analysts.
China’s Blockchain Service Network (BSN), for instance, said in June that it will be using technology from the project:
“This integration of Chainlink provides BSN users additional security, reliability, and interconnectivity to help fuel even greater growth and adoption of blockchain applications in China and around the world.”
Countless other firms and organizations in this industry are leveraging the startup’s oracles to bolster their products.
How this will translate into LINK’s adoption and respective price action, though, is not yet clear.
Featured Image from Shutterstock
Price tags: linkusd, linkbtc
Charts from TradingView.com
Down 17% From $9 High, Analysts Think Chainlink (LINK) Will Continue Plunge
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