Chainlink price: what’s the outlook after an 8% dip?

Chainlink (LINK/USD) has been under pressure of late. The losses in the week stand at 8.28% after accelerating by an intraday of 2%. The cryptocurrency has now lost about 88% of its value since last year’s high of around $53. But is Chainlink set to fall further?

Chainlink price drops to $7.13 amid bearish pressure

LINK bottomed at $6.0 in June as recovery looked sustainable. Currently, LINK trades at $7.13 from a local top of nearly $10 in August. The August high reflected optimism around Chainlink Economics 2.0. In particular, a token staking mechanism introduced by the new roadmap inspired the crypto community. The update also introduces long-term security on the network.

Consequently, the current LINK price reflects a broader concern than the blockchain’s specifics. A weak crypto sentiment due to macro concerns is responsible for the losses. Last week, US job numbers came stronger than expected, raising the speculations of economic tightening.

On Thursday, the US will release the inflation report amid expectations of elevated prices. A high inflation rate will cement the Fed’s resolve to raise rates aggressively to tame prices. Consequently, investors are taking a back seat from risky assets such as Chainlink ahead of the report. 

What’s the outlook for Chainlink price?

Chainlink 2.0 is a game changer for LINK. However, the update should be looked at in the longer term in influencing LINK price. That’s large because cryptocurrencies are showing a lot of correlation with macro events.

Besides, the recession continues to be a big fear. With the recession bells continuing to ring, the near future outlook for LINK remains bleak. Potentially, we will see a further downside before LINK makes a sustained comeback. Should the existing concerns fail to subside, the $6.0 bottom remains in sight.

LINK technical analysis

The daily chart outlook shows bears have overcome a potential rise above $7.5 for LINK. The level has been tested multiple times. On the downside, however, bulls have resisted a decline below the short-term ascending trendline. Who wins?

Source – TradingView

Looking at the daily chart, two possibilities, a bull and bear case, line up for the Chainlink token.

In the bull case, we assume that LINK buyers will continue to defend the ascending trendline. That will allow the price to continue to push high up for a potential breakout above 7.5. For such a possibility, the crypto sentiment must improve. It could also happen due to Chainlink’s specific developments. 

In the bear scenario, LINK bears will push the price below the ascending trendline. That will allow them to defend the $7.5 resistance. If bears manage to do so, then LINK could head back to the yearly bottom at $6.0.

Is the bear scenario more likely? Probably yes, from the technical indicators. The MACD indicator is in the bear zone while momentum is weakening. The recent declines also saw the LINK price move below the moving averages. However, soft inflation data on Thursday could turn the tables and help LINK overcome a possible drop to $6.0. So, we keep both scenarios open.

How to buy Chainlink

OKX

OKX is a top cryptocurrency exchange which offers over 140 cryptocurrencies to invest in.

OKX takes customer security very seriously, they store almost all of their clients’ funds in cold storage, and the exchange is yet to be hacked.

On top of this, the exchange offers very low fees and customers can even use their crypto as collateral for loans on the platform.


Buy LINK with OKX today

Coinbase

Coinbase is a global cryptocurrency exchange. Its platform is well designed for beginner investors and it offers a wide range of coins, as it has over 100 to choose from.

Coinbase has high level security built into the platform, a range of diverse features to use and it offers its users options for storing their crypto, such as being able to store coins on the Coinbase exchange.


Buy LINK with Coinbase today

The post Chainlink price: what’s the outlook after an 8% dip? appeared first on CoinJournal.

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