Chainlink (LINK) has experienced a 14% decrease in its value over the past week, aligning with a broader market downtrend. This significant price drop has pushed Chainlink below critical support levels, making it challenging for the cryptocurrency to regain upward momentum without fresh demand entering the market.
This analysis suggests that LINK holders might struggle to profit in the coming weeks, given the current market dynamics.
On a one-day chart, Chainlink's price has fallen below its 20-day exponential moving average (EMA). The 20-day EMA tracks an asset’s average price over the last 20 trading days and provides insight into potential price reversals.
Chainlink is also poised to break below its Ichimoku Cloud, reinforcing the bearish outlook. The Cloud assesses market trends and support/resistance levels, and when an asset’s price drops below it, it suggests a bearish phase.
Additionally, LINK's Aroon Down Line indicates a strong downtrend, with current values confirming the token’s price decline. A continued trend could push Chainlink's price another 27% lower, potentially revisiting its August low of $8.12.
Conversely, a surge in buying pressure could allow Chainlink’s price to rise, possibly reaching $19.73 if it breaks above the Cloud and 20-day EMA.
