Chainlink prices set to drop again as bulls lose control

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

Source: LINK/USDT on TradingView

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

Source: Coinalyze

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.