Blockchain News Report:
LINK has dropped by over 6% in the past seven days. The purchase pressure on LINK is high, but indicators suggest a price decline.
Chainlink [LINK] initiated a hopeful bull market rebound on July 7, hinting at a recovery from last week’s losses. However, LINK failed to sustain the upward momentum and quickly lost its upward trajectory.
Let’s delve deeper into what is happening and the expectations for LINK in the coming days.
Sell Signal on LINK Charts
Data from CoinMarketCap shows that LINK’s price has dropped by over 6% in the past seven days. However, over the past 24 hours, with the token price pushed to $13.2, there was a slight improvement, but this trend did not persist.
The price of Chainlink has only risen by 2% in the past day, trading at $12.81 at the time of writing, with a market cap exceeding $77.9 billion.
Popular cryptocurrency analyst Ali highlighted the possible reasons behind this decline on Twitter. According to the tweet, there is a sell signal flashing on the token’s 4-hour chart.
If true, more red candles may appear on the token’s 4-hour chart. Does this mean that this bearish trend will continue for a considerable period? Let’s look at the indicators’ suggestions.
High Purchase Pressure on LINK
Analysis of Santiment data by AMBCrypto shows that investors are still buying LINK, which is generally considered bullish. This seemed to be the case when LINK’s forex outflows surged a few days ago.
Furthermore, its supply on exchanges has decreased while its off-exchange supply has increased, further confirming the high purchase pressure.
However, due to the decrease in supply from top addresses last week, whales have little confidence in LINK and have sold off the token.
Another positive indicator is Chainlink’s Fear and Greed Index. At the time of writing, it stands at 23%, indicating that the market is in a “fear” stage.
Whenever this scenario occurs, it signifies a high likelihood of price increases. Next, we plan to examine the token’s daily chart.
However, market indicators appear rather pessimistic. For instance, the MACD shows a bearish crossover. The Chaikin Money Flow (CMF) is moving south.
Additionally, the Relative Strength Index (RSI) is following a similar trend, suggesting a price decline.
Reality Check: Here is LINK’s market value under BTC conditions
According to our analysis of Hyblock Capital data, it wouldn’t be surprising for LINK to fall below $11 if the bears take over and paint LINK’s chart red.
Conversely, if a bull market begins to dominate, investors might soon see LINK touch $15.
