Chainlink, the oracle platform powering the smart contract world, is facing headwinds despite a significant partnership. The DeFi giant’s price has plummeted by 4.1% in the past 24 hours, trading below crucial moving averages, raising concerns about potential further declines.
A key factor influencing this downturn is the bearish technical outlook. Chainlink’s price has formed a bearish rising wedge pattern, a technical indicator often associated with downward price movements. The token is currently retesting the lower boundary of this pattern, and a decisive break below could propel the price towards the $8 level.
However, the situation is not entirely bleak. Chainlink has recently secured a substantial partnership with Superstate, an asset management firm boasting over $100 million in assets under management. Superstate will leverage Chainlink’s price data feeds for its tokenized treasury fund, a testament to the platform’s growing influence in the traditional finance (TradFi) sector.
Despite this positive development, on-chain metrics are painting a cautious picture. Large Chainlink holders have reduced their inflows significantly, indicating potential selling pressure. Moreover, an uptick in exchange inflows suggests that some investors might be preparing to offload their LINK tokens.
While the technical indicators are currently bearish, a breach above the 50-day Exponential Moving Average (EMA) could signal a shift in momentum. This could propel Chainlink’s price towards the 200-day EMA and potentially even higher, reaching the $15 level.
Investors are closely monitoring Chainlink’s price action as it navigates this period of uncertainty. The token’s ability to overcome the current bearish pressure and capitalize on its growing adoption in the TradFi space will be crucial for its future performance.
