- Chainlink is trading on the backfoot at $25.04, losing -5.03% so far.
- The US gross domestic product (GDP) expanded at an annual rate of 6.6% in the second quarter of 2021.
- Forex trading market participants should look for a buy trade above the $24.50 level.
Chainlink is trading on the backfoot at $25.04, losing -5.03% so far. The LINK/USD pair failed to stop its early-day downward rally and remained well offered near below $25.00 on the day. The Chainlink price prediction remains bearish. However, the double bottom support level of $24.50 can extend some support.
The LINK price struggled to recover above the $27,00 resistance against the US Dollar but failed. Therefore, it dipped below the $25.00 support zone in the near term. The LINK price traded as low as $24.82 before it attempted a mild upside correction.
A Stronger Dollar Dragging the LINK/USD Pair Lower
The reason for the LINK/USD decline could be attributed to the US dollar’s strength. The broad-based US dollar maintained its previous-day bullish bias and drew further bids after three consecutive daily pullbacks.
The greenback regained some positive traction and broke its key barrier at around 93.00 amidst steady yields. Moreover, the rising cautiousness ahead of the speech by the Fed’s Powell at the Jackson Hole Symposium on Friday is supporting the dollar.
Moreover, the risk-off-market sentiment bolstered the gains, which tends to underpin safe-haven assets, including the US dollar. So, the upticks in the US dollar were seen as one of the leading factors that kept the LINK/USD price down.
Solana Foundation Integrated with Chainlink
The declines in the LINK could be short-lived as the Solana Foundation recently announced that it had integrated Chainlink with its platform, allowing developers to utilize decentralized price feeds. It is worth mentioning that Chainlink is an oracle service that provides price feeds for more than seventy-five asset pairs, including BTC/USD and ETH/USD.
The Solana Foundation says that these feeds can be used in most DeFi apps, noting that developers can save time and money by eliminating the need to build similar services from scratch. As per their keywords, “Instead, developers can focus individually on their core business logic and bring next-generation applications,” Thus, the positive headline was seen as one of the key factors that kept the lid on any additional losses in the LINK prices.
Lastly, the Bureau of Economic Analysis released the Prelim GDP q/q for the US. According to the Bureau of Economic Analysis’s “second” estimate, real gross domestic product (GDP) expanded at an annual rate of 6.6% in the second quarter of 2021. Real GDP climbed by 6.3% in the first quarter. Although GDP has missed economists’ forecast of 6.7%, it’s still above the 6.5% figure beforehand. Thus, the dollar is gaining strength and dragging the LINK/USD lower.
Chainlink Price Prediction – Daily Technical Levels
Support Resistance
25.60 27.25
24.58 27.89
23.93 28.90
Pivot Point: 26.23
Chainlink Price Prediction – Daily Technical Analysis: Can it Break Below $24.50?
Chainlink price prediction remains bearish; however, the double bottom support level of $24.50 can extend some support. The LINK price struggled to recover above the $27,00 resistance against the US Dollar but failed. Therefore, it dipped below the $25.00 support zone in the near term. The LINK price traded as low as $24.82 before it attempted a mild upside correction.
The LINK is now trading below $24.83 and the 100 hourly simple moving average. On the upside, immediate resistance is near the $27.00 level. The first key resistance is near the $27.50 level and the trend line. If LINK manages to cross the $27.00 and $27.50 resistance levels, it could gain further positive traction above the $28.00 level.
In contrast to this, the LINK could extend its decline if it fails to climb above the $26.00 and $27.00 resistance levels. Initial support on the downside is near the $23.00 level. Thus, the Forex trading market participants should look for a buy trade above the $24.50 level. The initial target remains at $26 and $27.10. Alternatively, a sell-stop can be placed below $24 to target $22.45 in the future. All the best.
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