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  • Ripple price on the verge of being oversold as the RSI enters the oversold zone.
  • David Tice, an investor, warns of market meltdown.
  • The parabolic SAR indicator is still negative on the daily chart.

Chainlink price has suffered under the brutish hands of the bears since recording the $54.6 all-time high (ATH) on May 10. This declines has since flipped the 20-day, 50-day and 200-day Simple Moving Averages (SMA) from support   to resistance.

Since May 19, LINK has spent most of the time moving below the 20-day SMA. This has seen the asset shed approximately 75% from its ATH.

Numerous recovery attempts have been made which have failed to produce higher highs. Such LINK price movement highlights the relatively weaker buying pressure.

Fears of a Market Meltdown

Despite the crypto market recording an exponential market grown in 2021, things have been drab over the last two months or so. Major cryptocurrencies have been trapped in a sideways price action with no clear indication of the direction the market will take.

This market consolidation could be behind David Tice’s warning that a market meltdown could be seen within the next few months. The former Prudent Bear Fund manager believes that the stocks and the crypto markets are entering a dangerous phase. He cited the rise in debt and over-price futures earnings as his main reasons.

You look at emerging markets,” said Tice, “There’s a lot of trouble in emerging market currencies where we’ve broken to new lows.”

With Bitcoin in consolidation, other altcoins, including LINK are riding on the downward train. Most assets have shed more than 50% over the last three months, indicating that bears are in general control of the market.

Chain Price Could Drop Further

At the time of writing, the LINK was hovering around $13.57. as long as LINK fails to produce higher highs above the 20-day SMA at around $17.25, the possibilities of a fresh downswing that slices through the support area at $13.5 increases.

If this happens, Chainlink price could retest the support area around $11.0.

The continued bearish outlook is validated a crypto signal from the parabolic SAR indicator which flipped from positive to negative on July 13 and has remained negative since. Moreover, the relative strength index (RSI) is on the verge of entering the oversold territory as seen on the Chainlink price daily chart.

Chainlink Price (LINK/USD) Daily Chart

LINK Daily Chart

Similarly, the Moving Average Convergence Divergence (MACD) indicator shows increasing bearish market momentum. This is illustrated by its continued movement above the signal line. Note that the bearish momentum will be validated furtehr once the MACD moves further down into the megative region.

Chainlink Price Could Reach These Levels

Chainlink price bulls will need to overcome the 20-day SMA resistance around $17.5 to substantiate any   recovery.

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