Chainlink price showed some strength in the past 24 hours as the entire market started to rise. However, technical analysis suggests the asset is still stuck in a broader bearish pattern. The price of Chainlink increased by 3.6% in the last 24 hours, and the price was traded at $10.50. The question remains whether the current general bullish market sentiment will be enough to turn the tide for Chainlink.
Can Traders Sustain Chainlink Price Up?
The disparity between Chainlink price and on-chain metrics is concerning. While a deep analysis of LINK open interest (OI) and price relationship reveals bullish sentiment among traders, on-chain metrics speak a different story—one that is bearish.
The Coinglass Crypto Derivatives Visualizer shows that LINK OI increased by 0.91% over the last 24 hours, and its price spiked by 3.88% in the same duration. When price and OI both rise, it signals that traders are opening Long positions, which is bullish for the asset’s price.
However, a look at Chainlink’s real volume on Messari Research reveals the network is struggling. LINK on-chain volume hit a monthly low of $46.1 million, with an occasional anomaly spike on August 5, when the entire crypto market crashed.
This suggests that while both futures and spot traders are sustaining the price up, little is happening on-chain in terms of transactional operations. While this can be explained as Chainlink cornering institutional clients, the steady decline of on-chain volume is still worrying.
LINK Price Analysis: Is a 47% Crash Avoidable?
Chainlink price prediction shows the asset is in a bearish continuation pattern, known as a Bear Pennant. This indicates that LINK may continue its downtrend after a period of consolidation.
If the price follows through with the Bear Pennant pattern, LINK will likely find support around the $10.49 level, but a break below this could push the price toward the next support near $9.00. Below that, a long-term support target could be set around $5.50, based on the flagpole’s projected downward height. This represents a 47% drop from the current price.
All the exponential moving averages (EMAs) are sloping and expanding downward, confirming the bearish sentiment. Chainlink price is also trading below all of them, reinforcing the downtrend.
The Stochastic RSI is currently in the overbought region, indicating that the asset might be due for a short-term pullback or continuation of the downtrend. The %K (RSI line) and %D (Signal line) are converging, suggesting a potential bearish crossover.
If the LINK price breaks above $10.85, this could invalidate the Bear Pennant and bearish thesis. LINK would test the next major resistance at $12.04 and finally at $14.50
The post Chainlink Price Bearish Pattern Holds Despite Market Recovery—What’s Next? appeared first on CoinGape.
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