Chainlink‘s recent price action has been a cause for concern among investors, with the token struggling to maintain its upward momentum. Technical indicators suggest a bearish trend, raising questions about whether LINK could potentially drop to $8.
Bearish Pennant Formation The price chart of Chainlink has formed a bearish pennant pattern, a technical formation that often precedes a downward price movement. This suggests that sellers have regained control of the market, and the potential for a significant price decline is high.
Technical Indicators Several technical indicators support the bearish outlook. The CMF (Cumulative Money Flow) has been below -0.05, indicating heavy capital outflow. The RSI (Relative Strength Index) has also been bearish, suggesting that sellers are dominating the market.
Resistance and Support Levels The $10.8-$11.2 zone is likely to act as resistance, and short-sellers may find it a profitable entry point. If the price breaks below the recent low of $8.08, the Fibonacci extension level marked $6.4 could be the next bearish price target.
Investor Sentiment Despite Chainlink’s recent integration of its services across 12 blockchain networks, which should be bullish for the long term, short-term investor sentiment remains bearish. The Open Interest behind LINK has been fluctuating, indicating a speculative market with mixed sentiment.
Conclusion Based on the technical analysis and current market sentiment, Chainlink’s price appears to be headed lower. While the integration of its services across multiple blockchains is a positive development, the short-term outlook remains bearish. Investors should exercise caution and consider the potential for further price declines.
