The bearish trend from a few days ago brought Chainlink (LINK) to $6,735 on April 26. The bulls attempted to recover and drove the price of LINK to a solid 24-hour high of $7.30, but later fell to a 7-day low of $6.773.
Due to the current FUD and increased regulatory pressure in the United States, The price of Bitcoin (BTC). dropped below $29,000. But if the bulls build strong momentum, BTC could test $30,000 and climb higher, dragging the rest of the altcoin market, including LINK, with it.
Will the bearish trend continue?
At the time of writing, the LINK market is still on the decline, down 2.49% to $7.06. According to CoinMarketCap information, LINK’s market cap fell by 3.11%, while its 24-hour trading volume increased by 30.83% during the downtrend.
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The increasing trading volume suggests a possible change in investor sentiment for LINK. It indicates that network activity is increasing despite the downturn, which could push the LINK price towards a rally.
However, if more traders try to sell their holdings, a sell-off could occur in the market, possibly adding to the downward pressure on the price.
Especially because of the persistent spring 2023 hackathon, long-term holders stopped selling. This recent event could attract new network players and start a long-term bull movement.
LINK Technical Analysis
LINK has seen some rejections in the last few days in the supply zone at $7.50, which is also the primary resistance zone. On April 30, LINK price reached the resistance zone and fell, attracting the bears.
Chainlink is trading between support and resistance levels at USD 6,773 and USD 7,500. The first significant resistance level for LINK is at $7,500. The next resistance zone is $8,831 if the price moves above this current zone. But if the bears build strong momentum, the next support will be at $5,492.
The market is down due to a change in the market structure caused by the 50 days SMA change of direction. If the bullish momentum does not pick up, the trend may turn into a potential bearish market.
The 50-day SMA established a Death cross by moving below the 200-day SMA, signaling a potential bearish signal and suggesting a sell opportunity.
At the time of analysis, the repetitive strain injury is 40.86 below the neutral zone. So this shows that LINK is not in the overbought zone, but seems to be moving towards the oversold zone.
The bears are aggressively pushing the price of LINK into the oversold zone while the bulls are still trying to hold onto the market even though momentum is weak. The MACD is currently trading below the signal line showing bearish sentiment in the market.
Featured image from Pixabay and chart from Tradingview
