Chainlink (LINK) Price Analysis: LINK Token Struggles to Break Above the Resistance Zone

The Chainlink token's sentiment was bearish, per the analyses, following which the fear and greed index is also at 40. This showed fear among investors for LINK

Chainlink’s token sentiment was bearish, according to the analyses, while the fear and greed index was also at 40. This indicated fear among investors for LINK, despite the token’s price increasing over the last four days.

A decline in demand for Chainlink was evident as the crypto’s traded volume value decreased by 23.4% over the last 24 hours. However, the token’s market cap showed a slight increase of 0.95% at press time.

The liquidity was relatively low as the volume/market cap ratio was 3.13%, resulting in a traded value of $199.264 Million. Chainlink also maintained a significant presence in the market, being the 16th largest cryptocurrency globally.

The token’s market cap dominance stood at 0.29%, and the supply inflation was high, reaching 9.11%.

While Chainlink’s maximum supply was not specified, its circulating supply was 608.099M LINK. The token’s fully diluted market cap was $10.634B, based on its maximum supply of 1.0B LINK.

A deeper analysis of Chainlink tokens revealed that large holders held around 69% of the tokens, and the token’s price correlation with Bitcoin was 0.81.

Chainlink had a total of 723K holders, out of which 242.47K addresses were “in the money,” indicating that their holdings were at a profit. This showed that 24% of the holders were in profit, while 62% were at a loss.

Examining the LINK token price on the daily chart, we can observe a strong lower-low pattern. Recently, the token price broke down below a crucial support zone.

A descending triangle pattern formed on the daily chart, followed by a dynamic resistance level.

Around a year ago, the LINK token price was trading in a consolidation zone for an extended period. The price later broke out above the consolidation and moved to a higher level.

At press time, the LINK token price declined to the breakout level. Moreover, if it forms a bullish pattern and breaks above the dynamic trendline, we could see a strong uptrend.

A close inspection of the technical indicators reveals that the LINK token price declined below the average true range of the supertrend after a long price decline.

It traded below both the 50-day and 200-day EMAs for a significant amount of time.

Additionally, both the EMAs were trading in a death cross from the last few weeks as of press time.

The MACD and the signal line have been trading in the negative trajectory for a long time after a death cross. This indicated a strong dominance of sellers in token price.

The RSI hit the oversold zone a few days back and crossed over the 14-day SMA. It showed volatility and uncertainty in the token price.

If the LINK token price continues to decline, it might find support at the levels of $5.70 and $9.50. This would be followed by the resistance levels of $19.20 and $22.80.

This article is intended to provide information only and does not constitute any financial, investment, or other advice. The author or anyone mentioned in this article is not responsible for any financial loss that may occur from investing in or trading. Please conduct your own research before making any financial decisions.

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