Chainlink Price Creates Bearish Double Top as Whales Offload, Facing Over 50% Drop Risk
Price Decline: Chainlink (LINK) has experienced a 16% drop over the past month and is down nearly 55% from its year-to-date high, currently trading at $12.49 with a market cap of $8.84 billion.
Bearish Patterns: A bearish double top pattern has formed on the weekly chart, indicating potential further declines, with key support at the $11.08 neckline that, if breached, could lead to prices dropping to $8 or even $5.
Whale Activity: Significant whale selling has been observed, with a 2% decrease in tokens held by whales and a 2.7% increase in LINK tokens on exchanges, suggesting increased selling pressure.
DeFi Usage Decline: The total value locked in Chainlink-based DeFi applications has fallen from over $1.13 billion to around $545 million, reflecting a slowdown in demand and usage of Chainlink's services.
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Technical Analysis for LINK
Technical Sentiment Analysis for Chainlink (LINK) As of , Chainlink (LINK) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 3 technical signals, shows that 0 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status Currently, the Relative Strength Index (RSI) for LINK stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the stock.
Support, Resistance & Moving Averages From a structural perspective, LINK is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Chainlink (LINK) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 3.239 | 5.194 | 7.259 | 9.214 | 11.279 | 13.234 | 15.299 |
| Fibonacci | 5.194 | 6.73 | 7.679 | 9.214 | 10.75 | 11.699 | 13.234 |
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