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LINK Price Prediction: Will it Fall to $5?

By:
Mohadesa Najumi
Updated: Jun 29, 2022, 11:59 UTC

LINK is down 87% from its all-time high, with the potential for downwards movement to the $5 mark

Chainlink cryptocurrency coin

In this article:

Key Insights:

  • LINK faces resistance at the $6.78 mark, while the closest support level lies at $6.16.
  • The crypto is down 87% from its all-time high of $52.88 set in May 2021.
  • Some analysts foresee a price drop to $5 as selling pressure increases in the short-term. 

LINK, the native coin of the decentralized oracle network, Chainlink has been trading sideways over the last two weeks, despite making a strong recovery on June 8 when prices rose by 11.6%.

The ERC-20 token, which uses a proof-of-stake (PoS) consensus protocol where participants run their own nodes and receive rewards for providing data to smart contracts, faces resistance at the $6.78 mark.

Price Action

Over the last three years, LINK has gained nearly 300%. The token experienced a meteoric rice during 2020, rising from $1.8 on January 1, 2020 to $19.99 on August 16.

 

Chainlink daily price chart
LINK 290622 Daily Price Chart

Since its all-time high (ATH) of $52.88 set on May 10, 2021, LINK has been on a downward trajectory and is 87% below its ATH. In fact, data from IntoTheBlock shows that 85% of addresses are holding LINK at a loss.

The coin is currently trading at $6.42 and ranks 22nd in the list of cryptocurrencies worldwide by market capitalization at $2.9 billion. This is down a long way from its all-time high of $20 billion set in May 2021 and means that the crypto has fallen about 66% year-to-date.

Currently, LINK failed to break above the $7.00 resistance level and has fallen back below the $6.50 mark. Current price action shows a falling wedge pattern. This range is stretched from $9.32 to $5.5 and has been in place for roughly seven weeks.

Overall, LINK has fallen by 12% in the last two days and its price is moving downwards towards the $6.00 support level as bearish momentum takes over. Some market commentators foresee a price drop to $5 as selling pressure increases in the short-term.

 

Chainlink weekly price chart
LINK 290622 Weekly Price Chart

Technical Indicators

Mid-term technical analysis show a bearish dominance over both the 4-hour and the 24-hour charts so potential downward movement to the $5 mark is not unlikely, especially as charts are projecting a reversal sign at the resistance trendline.

A sign of recovery would be if a bullish breakout from the wedge pattern occurs and the price trades above the $7.5 psychological level. A bullish reversal pattern could lead the altcoin to breach the resistance trendline

Also, Chainlink’s new roadmap, which revealed that token staking will be coming to the network in the second half of this year, could serve as a boost.

Technical analysis shows that short-term sentiment on LINK is bearish, with 0 indicators displaying bullish signals compared to 29 bearish signals at the time of writing.

The daily simple and exponential moving averages (EMA) are giving sell signals. The relative strength index (RSI) stands at 43. An RSI reading of 30 or below indicates an oversold or undervalued condition, while a reading above 70 would suggest the asset is becoming overvalued or overbought.

The EMAs are currently trading around the mean position as net price movement over the last seven days remains low, suggesting decreased LINK trading activity.

In terms of a Chainlink crypto price prediction, LINK could see its price rising to $6.473 by July 2022, reaching $1.221 in January 2024 and hitting $0.442 by January 2025. On the flip side, a bullish forecast would place LINK at $9.34 by January 2024 and $12.18 by January 2025.

About the Author

Mohadesa Najumi is a British writer who has worked within crypto, forex, financial technology, and the stock market industry. Mohadesa received her MSc in Political Science and International Relations at the University of Amsterdam.

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