The Chainlink price has fallen 5% over the last 24 hours to exchange hands at $13.98 as of 2:00 a.m. EST.
LINK appears to continue that negative trend experienced over the past week with 3.5% losses in the past seven days.
However, the oracle token remains bullish on the longer timeframes having witnessed 28% and 125% gains over the past 30 days and three months respectively. It is up 116% over the last six months and over 151% year-to-date (YTD).
With a market capitalization of $599 million, LINK is the 14th largest cryptocurrency by market value, according to data from CoinMarketCap.
The short-term bearish trajectory and the bullishness displayed by the Chainlink price on the longer timeframes has left many wondering whether it is the right time to buy the token or not.
Chainlink Price at Risk of 16% Losses to $11.75
The LINK price action between Nov. 10 and 12 has been characterized by a series of lower highs and lower lows. This has led to the appearance of a descending parallel channel on the daily chart.
On Nov. 25, Chainlink escaped from the bearish technical formation, leading many traders to believe that the downtrend may have come to an end. This turned out to be a bull trap as supplier congestion from the $15.0 psychological level embarked on a profit-taking spree resulting in 8% losses over the last 48 days.
As LINK trades in a third straight bearish daily trading session, it was sitting on immediate support provided by the upper boundary of the descending channel at $13.90. A daily candlestick close below this level would pull LINK back into the confines of the technical chart pattern.
The first line of defense would emerge from the $13.00 psychological level, embraced by the middle boundary of the declining channel. Additional lines of defense are found at the $12.0 psychological level or the lower boundary of the governing chart pattern at $11.75. This would bring the total losses to 16%.
LINK/USD Daily Chart
Apart from the significantly bearish chart pattern, the Relative Strength Index (RSI) validated LINK’s pessimistic outlook. This trend-following oscillating indicator was facing downwards having moved from 59 over the weekend to the current value at 52. This suggested that the bears were slowly taking over the market dynamics.
Conversely, the RSI was positioned in the positive region above the middle line. This suggested that the market conditions still favored the upside. As such, Chainlink could turn up from the current levels first toward $15.0 and later to the $16.0 supply level. Higher than that, the next logical move would be the upper tip of the prevailing chart pattern at $16.0 representing a 20% increase.
Source: https://www.analyticsinsight.net/chainlink-price-prediction-link-drops-5-in-24-hours-time-to-buy/