Chainlink (LINK) Turns Bearish and Poised for a Notable Price Decline

The market sentiment across the cryptocurrency landscape is quite bearish. Amid this, Chainlink (LINK) turns bearish and is poised for a notable price decline

Chainlink (CRYPTO: LINK) is showing bearish signs and might face a significant price decline as it trades at a crucial support level amid a broader market downturn.

Here's a look at the Chainlink technical analysis and upcoming levels to watch.

Chainlink Technical Analysis: Bearish Setup

LINK appears bearish and is on the verge of breaking down the inclined trendline of its ascending triangle price action pattern on a daily time frame, according to FxPro's technical analysis. Since the beginning of August 2024, this inclined trendline has provided support to LINK, resulting in buying pressure and upward rallies each time.

However, owing to the negative outlook and traders' bearish bets, the asset now seems to be facing the risk of breaking down from this support level.

Based on the historical price action, if LINK breaks out and closes a daily candle below this crucial support level of $10.65, there is a strong possibility that the asset could decline by 20% to reach the $9 level in the coming days.

Currently, LINK is trading below the 200 Exponential Moving Average (EMA) on the daily time frame, which indicates a downtrend. In trading and investing, traders often use the 200 EMA on the daily chart to determine whether an asset is suitable for the short side or the buy side.

Chainlink Bearish On-Chain Metrics

LINK's negative outlook is further supported by on-chain metrics. According to the on-chain analytics firm Coinglass, LINK's Long/Short ratio currently stands at 0.94, which indicates bearish sentiment among traders. Additionally, its open interest has dropped by 4.5% over the past 24 hours and jumped by 1.5% over the past four hours.

This drop in open interest for LINK suggests declining interest among investors and traders.

Chainlink Price Action Today

At press time, LINK is trading near $11.20 and has experienced a 1.1% price decline in the past 24 hours. During the same period, its trading volume dropped by 34%, indicating reduced participation from traders amid a broader price decline across the crypto market.

The above is the detailed content of Chainlink (LINK) Turns Bearish and Poised for a Notable Price Decline. For more information, please follow other related articles on the PHP Chinese website!