Chainlink prices set to drop again as bulls lose control
The RSI declined steadily over the past few days, showing strong downward momentum. The market structure was also bearish after the move below $6.14 on 9 September.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Chainlink has a bearish market structure on the 4-hour chart.
- A drop toward $5.7 and $5 appeared likely as bearish sentiment seized control of the market once more.
A recent Chainlink [LINK] update on the price feed showed it has delivered 10 billion high-quality data points on-chain. The sentiment also saw a slight positive change over the past couple of days, but the optimism might have begun to evaporate.
Read Chainlink’s [LINK] Price Prediction 2023-24
The price charts showed LINK was unable to hold on to a short-term support zone that the bulls established last week. The weekend saw prices slide lower and bearish pressure increase.
The short-term market structure was bearish once more
The 4-hour chart showed a bearish order block at the $6.2 zone, highlighted in red. On 7 September, Chainlink prices climbed past this zone and retested it as support, flipping it to a bullish breaker block. However, the bulls were unable to drive further gains, and the sell pressure of the past few weeks forced LINK beneath $6.2.
The RSI declined steadily over the past few days, showing a shift in momentum toward bearishness. The market structure was also bearish after the move below $6.14 on 9 September. The OBV, which saw a bounce alongside the prices last week, was trending lower.
The price action and indicators support the idea that LINK would face more losses. To the south, the $5.7 and $5 are the next levels of significance from the higher timeframe price charts. We will likely see a move to these support levels in the coming days and weeks.
The decline in spot CVD corroborated the evidence from the OBV
Data from Coinalyze showed that the Open Interest has slowly fallen lower since 8 September. At this time LINK prices were also in a short-term downtrend. Together, they signaled discouraged longs and bearish sentiment in the market.
How much are 1, 10, or 100 LINK worth today?
The spot CVD was also in a steady downtrend over the past week. It indicated selling pressure in the Chainlink spot market and was a sign that buyers were weak.
Therefore, traders can expect a bearish continuation for LINK. Bitcoin [BTC] volatility could see a short-term bounce, but this might not result in a bullish reversal.
