- Chainlink had its price slipping under a critical support area at $29.82, suggesting incoming steeper retracement.
- The altcoin might offer trapped traders an opportunity to offload around the resistance barrier at $27.61 before declining towards $22.24.
- A daily close beyond $31.46 will nullify the bearish narrative.
Chainlink witnessed its price declining considerably over the past seven days, and the bearishness seems to dominate the altcoin in the coming sessions. As Bitcoin prints, weak price actions, alternative tokens, including LINK, have higher chances of retracing towards stable support areas.
Chainlink Seems Ready for More Losses
Chainlink had its price piercing its 24hr supply territory in the $36.70 – $44.76 range on 10 November by failed. Such movements resulted in a 31% retracement to Chainlink’s current price of $26.54. The downswing period had LINK slicing through the support floor at $31.46 and 50% retracement at $29.82.
As the overall cryptocurrency industry appears to crumble due to massive selling pressure, market players may expect LINK to extend its plummets. However, Chainlink enthusiasts can anticipate a relief surge, the alt retesting the resistance barriers at $27.6 or $29.8. Such an action will allow interested buyers to trim their holdings.
Failure to overturn these obstacles into support zones will validate the bearish narrative and catalyze a 20% crash towards $22.24. Such a plunge will mean breaching the range low near $23.26. More downward pressure can see LINK touching $21.02, a 24% plunge from $27.61.
However, if the alternative coin produces a significant daily close beyond $29.82, it will show bulls attempting a comeback. However, Chainlink requires a higher high beyond $31.46 to confirm the anticipated upsurge and annul the bearish narrative. That way, the crypto can surge to retest the resistance barrier at $35.06.
Keep in mind that Chainlink has struggled to secure support since the 19 May crash, maintaining beneath its basic demand barrier. However, its developers’ latest announcement suggests upswings might be around the corner. They declared plans to create an app to access data via the Chainlink node. That accomplishment plus Bitcoin resurge can translate to price recoveries. However, let us wait for what the upcoming trading sessions will have.