thecryptobasic.com
Following the recent crash under $10, the slow recovery from Chainlink as the market rebounds warns of significant downside risk. Will the bearish trend in LINK extend below $7?
Trading at a discount of 54%, Chainlink’s pullback run coinciding with the market crash results in a fatal drop under $10. The downfall drops the market cap to $6 billion and slides its crypto market position down to sixteenth in the top 100 list of coins.
With a sideways trend near the psychological mark of $10, the altcoin hints at an extended recovery. So, let’s check the Chainlink price analysis to evaluate the chances of a bullish recovery.
Has The Correction Bottomed Out?
Retracing from the $21 peak, Chainlink fails to find any concrete support as the pullback phase intensifies. With a lower low formation, the $LINK price breaks under crucial levels and the dynamic support levels.
As per the Fibonacci retracement over the bullish recovery in Q2, Chainlink took multiple supports at the 61.80% level at $12.689. However, the recent market crash drops the prices under $10 and the 78.60% Fib level.
The downfall results in multiple bearish crossovers and a death cross in the crucial daily EMAs (20, 50, 100, and 200). Furthermore, the bearish run causes the daily RSI line to fall to the oversold boundary.
Currently, Chainlink trades at $10.030 with an intraday move of 5.70%, forming a bullish candle. This prolongs the sideways trend in $LINK below the 78.60% Fibonacci level.
Chainlink’s Crossroad At $10: Will Bulls Prevail?
Post-bearish move, Chainlink suffers a massive loss in market value and struggles to surface above the $10 psychological mark. Despite the multiple integrations of Chainlink’s CCIP with top names Mentis, Astar Network, and Affine, $LINK failed to uphold any levels.
As per the Fibonacci levels, a bullish break of the 78.60% Fib level will be a strong buy signal. The next target levels for the recovery rally are the 38.20% and 50% Fibonacci levels at $12.689 and $14.412, respectively.