Chainlink’s price action has been overtly bearish as of late, with the cryptocurrency being unable to hold above $10.00 despite the technical strength resulting from its recent rebound from the $7.00 region.
It seems that the “v-shaped recovery” it posted from these lows was not enough to alter its near-term outlook, as it now appears to be at risk of seeing further downside.
This weakness has come about as a result of turbulence within the rest of the crypto market.
Bitcoin’s price has faced heightened sell-side pressure due to revelations regarding the CFTC’s charges against the BitMEX owners, as well as turbulence within the stock market.
This has not boded well for altcoins, with many posting massive losses as investors flee away from “beta assets” in search of lower-risk assets like Bitcoin and stablecoins.
While looking towards Chainlink’s price action, one analyst explained that he is looking for a move down to the cryptocurrency’s August open and August low. This means that it could soon plunge significantly lower in the days and weeks ahead.
Chainlink Declines Below $10.00 as Selling Pressure Mounts
At the time of writing, Chainlink is trading down 4% at its current price of $9.22. This marks a notable decline from its recent highs of $10.50 set just before the recent selloff.
The cryptocurrency’s price action has been weak, to say the least, ever since it declined from its multi-month highs of $20.00.
The intensity of this selloff has been rather extreme, and it does seem as though it struck a serious blow to its underlying strength.
$10.00 has been a pivotal level for LINK, although bulls have so far been unable to secure a strong positioning above this level.
Analyst: LINK Could Soon Plunge Towards $6.85
While speaking about where he expects Chainlink to trend next, one analyst stated that he is looking for a move down towards the cryptocurrency’s August low under $7.00.
“LINK update. Probably get a bounce here at ‘July high’. Once we can clear this level, i’ll tighten stops and look to add more targeting ‘August open’ and then ‘August low.’”
Image Courtesy of TraderSZ. Chart via TradingView.
Where the market trends next will likely determine the fate of Chainlink, but it remains unclear as to whether or not it will be able to garner enough independent momentum to break its downtrend.
Featured image from Unsplash. Charts from TradingView.