Disclaimer: The findings of the following article attempt to analyze the evolving patterns in Chainlink’s long-term market and its impact on the price
At the time of writing, the crypto-market had begun correcting, with many of the market’s major cryptos dropping in value over the past couple of days. Chainlink [LINK], while it managed to rise on the rankings to establish its position on the charts, was also seeing its price fall, but this was only after LINK reported an all-time high of $20.
The press time value of the digital asset had slipped to $16.325, with its market open to a world of volatility, a finding that suggested that sell-off pressure could be building in the market.
Source: LINK/USD on TradingView
Forming part of an extended ascending channel, LINK’s price has only witnessed upwards momentum with little sell pressure since June. The crypto-asset’s rising price, however, was highlighting a correction in the market, with the price breaking down. The market, at the time of writing, was primed for such a trend reversal. On the contrary, the long-term picture for Chainlink still noted a lot of bullish pressure.
LINK recently shifted back into the equilibrium zone after lying in the overbought zone for most of August. The digital asset remained close to the overbought zone, however, while its price remained close to its resistance level on the charts. As the resistance of the coin had not been tested enough, LINK may once again touch the price level and fall back. The 50 Moving Average was also noting a bullish market as it offered support to the coin’s price on the charts.
Source: LINK/USD on TradingView
If the price of the crypto-asset breaks down, the visible range provided the price target for LINK. Despite the high value of the digital asset at press time, its average trading price has been $3.44, and if LINK failed to hold on to $9.72, it may slip directly to this level. It can then later bounce back from $3.44 to trade in the range of $3.86 and $4.61.
