Chainlink (LINK), the popular oracle network, has been facing bearish pressure in recent weeks, primarily due to the broader market’s uncertain conditions. While there is hope for a recovery, the immediate outlook for LINK remains challenging.
One positive development for LINK is the decline in dominance of short-term holders. These investors, who typically hold for less than a month, have seen their influence on the market decrease significantly from 7.37% to 2.9% over the past four weeks. This reduction suggests a more stable base of long-term investors, potentially supporting LINK’s price stability in the short term.
Ichimoku Cloud Analysis Remains Bearish
Despite the encouraging development with short-term holders, the technical analysis provided by the Ichimoku Cloud remains bearish. The cloud is still positioned above the candlesticks, indicating potential extended bearish conditions. This suggests that LINK may continue to face downward pressure in the near term.
Recent Price Action and Future Outlook
LINK’s price recently experienced a brief 30% increase, which almost triggered a bullish signal. However, this positive momentum was short-lived, and the price soon fell back.
Currently trading between the resistance of $12.35 and the support of $10.79, LINK’s price is likely to remain sideways in the short term. If the price falls below the $10.79 support level, a drop to $9.35 is possible.
Also Read: Chainlink (LINK) Eyes 50% Surge After Breaking $10 Resistance – Key Stats And Trends To Watch
However, for LINK to recover the 30% losses from the July crash, it must break above the $12.35 resistance level. This would enable a rise towards $13.00, and flipping this level into support could push LINK to $13.77, invalidating the bearish-neutral thesis.
In conclusion, while the decline in short-term holder dominance is a positive sign for LINK, the broader market conditions and bearish technical indicators suggest that the altcoin may face continued challenges in the near term.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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