Chainlink crypto slips 8% after CCIP 2.0 launch – Can LINK hold $12?

The Chainlink [$LINK] Cross-Chain Interoperability Program (CCIP) version 2.0 was released on the 28th of September. The groundwork for its Q4 cycle was laid, it was reported. Yet, the $LINK price is down 8.12% from the $14.02 daily session open on the same day.

Moreover, the price drawdown was part of the wider crypto market sell-off. Chainlink crypto maintained its bullish overall trend, but investors were not extremely enthusiastic about the immediate bullish prospects.

Though the CCIP represented a sturdier bridge, the altcoin is also subject to macro conditions and $LINK-specific sentiment shifts.

A call for a Chainlink crypto dump

A crypto analyst observed that Chainlink crypto was breaking below the neckline of a head-and-shoulders pattern it had formed on the 4-hour timeframe.

If $LINK continued to trade below $13.56, the chances of a continued price move down toward $12.39 and $11.98 remained likely.

Towards the end of September, the chances of a Chainlink rally beyond $15 were good. However, the altcoin fell below a rising trendline support from mid-September, shifting its short-term bias bearishly.

On the daily timeframe, the swing structure was bullish. The $12 area was key, with multiple candlewicks to it over the past two weeks. It is possible that $LINK would dip briefly below $12 to sweep the liquidation levels below before recovering.

The A/D indicator continued to show buyers were dominant. The Awesome Oscillator highlighted some short-term bearish momentum, but the indicator remained above zero to showcase overall bullishness.

Should Chainlink traders wait?

The 4-hour timeframe’s structure shifted bearishly when the $13.47 swing low (dotted cyan) was breached a few days ago. The technical indicators showed heightened sell pressure and downward momentum in October.

Notably, a deeper retracement toward the 78.6% Fibonacci retracement level at $11.72 was possible. Moreover, buyers can wait for a positive price reaction from $11.72-$12.0 before looking to buy.

Final Summary

• The CCIP 2.0 upgrade introduced in late September fueled a price move to $15.77, but $LINK has since retraced by 18.4%.
• The higher-timeframe Chainlink crypto price bias was bullish, but the altcoin was affected by October’s market-wide correction.