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- Technical indicators suggest that Chainlink’s struggles may persist in the near term.
- Ali Martinez asserts that Chainlink may experience a bullish surge based on readings from the Tom DeMark (TD) Sequential indicator.
The cryptocurrency sector began January 2023 on a bearish tone, with Chainlink (LINK) badly affected as Changpeng Zhao, the founder of the world’s largest cryptocurrency exchange, Binance, was sentenced to four months imprisonment. This news, which made the downward trend even more apparent, contributed to the drastic drop in the rest of the altcoins. The aforementioned coins were ChainLink, which experienced a notable decline in market capitalization, finishing the month with a 31% decrease.
Technical Analysis Points to Further Declines
Technical factors indicate the probability of Chainlink’s prices lingering at the current level in the short term. Chainlink’s price performance remains an unfortunate example for all attempts at fixing the situation. The lack of a secure bullish anchor and a decline below critical support levels has elevated the downtrend perception.
On the weekly chart, ChainLink’s price has decreased and is below the current 50-week exponential moving average(EMA) at $12.76, with a 2.88% intraday fall. That decline followed a 6.77% fall observed the previous night and further raised fears. Even though the price is going downwards, the price line is reaching the $12.24 support level, causing some demonstration traders to be optimistic about the next hike. Subsequently, these figures also include the daily RSI line and the MACD signal, which may indicate a fair trend for investors, thus increasing their highest hopes.
Chainlink’s Upside Potential According to Analysts
According to Ali Martinez, a well-known crypto trader, Chainlink might breach the upside, judging by the readings on the TD Sequential indicator. Nevertheless, a fellow analyst named “Altcoin Sherpa” highlights the problem of Chainlink, which is a sideways movement and a typical indicator of a prolonged consolidation.
The TD Sequential is flashing a buy signal on the #Chainlink 12-hour chart! If $LINK stays above the $13.87 support, we could see a strong rebound to $15.50. pic.twitter.com/BJgvEtzUho
— Ali (@ali_charts) April 28, 2024
Ali has shared insights with his social media following on the platform X. According to Martinez, a bullish TD Sequential indicator signal is present on the 12-hour chart for Chainlink (LINK). This technical analysis tool is applied vertically through the trend to identify possible price reversal points. Here, the trend will align with the price hike after the complete possibility of a trend has been revealed. Martinez stated that Chainlink could rebound if the price remains above the $13.87 level. The market could grow by 12% to its target price of $15.50.
While Martinez does believe that short-term prospects for Chainlink look promising, Altcoin Sherpa, another pseudonymous analyst, has a more conservative point of view. Sherpa highlights that Chainlink has withstood a consolidation period of about 500 days, but its recent breakthrough is not as promising as it should be. Although a recent rally from $5 in June to a high of $22 in July indicates a positive movement, Sherpa voices worries regarding the coin’s inability to achieve notable gains considering the prolonged consolidation phase the coin has been placed in.
It's quite possible that altcoins are done for the next 1-4 months. There are certainly going to be outliers but I think that the majority need time to chill out and consolidate after such a big run.
The scary thing is that many alts didn't even run that hard over the last few… pic.twitter.com/sGke8PT5yw
— Altcoin Sherpa (@AltcoinSherpa) April 16, 2024
It is worth noting that LINK is currently trading at $12.82 with a 24-hour decline of 5%. Additionally in the weekly charts the coin registered a 17% decline.
