Chainlink price hovers just above a historical barrier, but technicals suggest one more low could occur
- Chainlink price has lost 25% of its market value since rallying 67% this summer.
- LINK price consolidated under relatively sparse volume, hinting that bulls want a better deal.
- Invalidation of the bearish thesis is a closing candle above $9.65.
Chainlink price has yet to decide if a market bottom is in. A sweep-the-lows event is still on the table.
Chainlink price shows bulls lack interest
Chainlink price auctions near a significant ascending trend channel as retail traders place their bets on the next directional move. Since July, the LINK price has rallied 67%, breaching impulsively through the historical trend line, influencing the Chainlink price since 2020. Following the impressive rally, Chainlink price witnessed a 25% decline amidst what had first appeared to be a profit-taking consolidation mid-August.
Chainlink price currently auctions at $7.16, just below the ascending historical barrier. The volume profile showed an uptick in transactions worth noting amidst the 25% decline and has since tapered while the price congests near the $7.00 price zone. Currently, the bulls are trying to reconquer the 8-day simple moving average. Placing an entry before the event occurs would be ill-advised; thus, this thesis remains bearish with a potential sweep-the-low event in the cards targeting $5.19.
LINK/USD 1-Day Chart
Invalidation of the additional 25% decline depends on $9..65 remaining unbreached. If the bulls can produce a daily closing candle above $9.65, they may be able to produce a rally targeting $13 in the short term, resulting in a 90% increase from the current Chainlink price.
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