The bearish trend a few days ago brought Chainlink (LINK) down to $6.735 on April 26. The bulls tried to recover and drove the price of LINK to a solid 24-hour high of $7.30, but it later fell to a 7-day low of $6.773.
Due to the current FUD and increased regulatory pressure in the United States, Bitcoin’s (BTC) price dropped below $29,000. But if the bulls build strong momentum, BTC may test $30k and climb higher, dragging the rest of the altcoin market, including LINK, with it.
Will Bearish Trend Continue?
As of the time of writing, the LINK market is still moving down, falling by 2.49% to $7.06. According to CoinMarketCap info, LINK’s market cap decreased by 3.11%, while its 24-hour trading volume rose by 30.83% during the downtrend.
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The increasing trading volume suggests a possible change in investors’ sentiment for LINK. It indicates that network activities are increasing despite the downturn, which might push the LINK price to a rally.
However, if more traders attempt to sell their holdings, a market sell-off may occur, potentially adding to downward pressure on the price.
Notably, due to the ongoing Spring 2023 hackathon, long-term holders stopped selling. This recent event might draw new network players and start a long-lasting bull movement.
LINK Technical Analysis
LINK has seen a few rejections at the supply zone of $7.50 in the past few days, which is also the primary resistance zone. On April 30, the LINK price hit the resistance zone and went down, which attracted the bears.
Chainlink trades between support and resistance levels of $6.773 and $7.500. The first significant resistance level for LINK is $7.500. The following resistance zone is $8.831 if the price moves above this current zone. But if the bears build strong momentum, the next support will be $5.492.
The market is down due to a change in market structure caused by the 50-day SMA change in direction. If the bullish momentum doesn’t pick up, the trend may change to a potential bearish market.
The 50-day SMA established a Death Cross by crossing below the 200-day SMA, indicating a potentially bearish signal and suggesting a selling opportunity.
At the time of analysis, the RSI is 40.86 below the neutral zone. Therefore, this shows that LINK is not in the overbought zone but seems to be heading toward the oversold zone.
The bears are aggressively pushing the price of LINK to the oversold zone while the bulls are still trying to hold the market, even though the momentum is weak. The MACD is currently trading below the signal line, showing bearish sentiment in the market.
Featured image from Pixabay and chart from Tradingview
