Chainlink Price Bull Run Fades, Bearish Risks Rise
NOIDA (CoinChapter.com) — The recent Chainlink (LINK) price bull run propelled the blockchain platform to two-year highs, with LINK price spiking nearly 45% in less than two weeks.
The bull run attracted the attention of crypto analysts like Scott Melker, aka ‘The Wolf of All Streets‘ and Matt Hogan from Bitwise, who discussed LINK’s rally and Bitcoin’s sluggish reaction to bullish cues like spot BTC ETF approval in a recent X broadcast.
Melker and Hogan explored several aspects influencing the cryptocurrency market. The analysts highlighted the slowing down of outflows from the Grayscale Bitcoin Trust (GBTC) and Bitcoin price’s lack of reaction to the positive inflow changes.
Moreover, Melker speculated on the Real-World Asset (RWA) narrative as a potential driver of LINK’s price.
The RWA narrative focuses on the integration of real-world assets with blockchain technology. As such, RWA is particularly compelling for Chainlink due to its role in facilitating secure and reliable data feeds for smart contracts.
Furthermore, the two crypto experts explored the ripple effect of the Bitcoin price action on altcoins. Melker and Hogan highlighted that investors await significant cues before entering the market.
The analysts noted that Chainklink’s ability to provide reliable, tamper-proof data to smart contracts on any blockchain makes it an integral part of the blockchain ecosystem’s infrastructure, which can help add cues for LINK price to continue its bull run.
LINK Price Rally Faces Bearish Pattern
Meanwhile, LINK Price’s recent bull run has resulted in the token painting a bearish technical pattern called the ‘Rising Wedge.’
The pattern forms when an asset’s price consolidates between upward-sloping support and converging resistance lines resembling a wedge. Declining trading volumes often accompany a breakdown below the pattern.
The price target of the pattern is equal to the height of the back of the wedge. If the LINK price breaks below the bearish pattern, the token might fall to the theoretical price target of $9.95.
Chainlink Price Bull Run Faces Key Resistance
The Chainlink token’s bull run stuttered near the $20.01 resistance, a price level the token has failed to reach since Jan. 2022. Crypto analyst Ali highlighted that nearly 5,330 addresses hold over 8.59 million LINK tokens in the $19.40 and $20.03 price bands.
If the LINK price breaks through the supply wall near $20, the Chainlink token’s price would likely rally to the resistance near $23.
However, if the LINK price bull fails, the token could drop to the 20-day EMA (red wave) support near $16.7. Moreover, breaching the immediate support level might see LINK price testing the 100-day EMA (blue wave) support near $14.3 before recovering.
The RSI for LINK remained neutral, clocking a reading of 67.29 on the daily charts.
The post Chainlink Price Bull Run Fades, Bearish Risks Rise appeared first on CoinChapter.
Filed under: Bitcoin - @ February 8, 2024 10:16 am