Bearish Indicators Confirm Impending Price Dip for Chainlink (LINK)
- LINK/USD hit the lowest 24h closing since 2020 (July).
- The altcoin appears vulnerable to declines beneath the horizontal foothold of $5.70.
- LINK/BTC faces resistance near 38K SATs.
Chainlink’s long-term forecast displays a bearish case amidst the ongoing downside trend, which might intensify if a rebound fail to materialize soon. Meanwhile, the alt is in the mode of beaching the 230d support zone. That might catalyze sharp dips for LINK. Though LINK-BTC doesn’t exhibit bullish price action, it demonstrated a higher reversal probability than the USDT counterpart.
LINK Longer-Term Price Forecast – $4.40 Looms
Chainlink has seen its price dipping beneath a descending resistance zone since 8 November. Meanwhile, the line triggered a rejection recently (13 December). That catalyzed the 29 December $5.45 minimum price. While publishing this article, LINK traded under the horizontal foothold of $5.80. further, the $5.67 28 December close represented the lowest mark since 2020 (June). The downward extended in the following 24 hours.
Next, the 24hr Relative Strength Index broke from the bullish divergence line and authorized the mark as resistance. These represent bearishness for the alternative token, confirmed by $5.80 support, which has existed for around 230 days. Thus, losing this foothold might initiate a sharp drop toward the support floor at $4.40.
Meanwhile, breakouts from the descending resistance might trigger a relief rally. However, such a price prediction doesn’t appear likely for Chainlink, considering the discussed bearish indications.
LINK-BTC at Break-or-Make Zone
Though the LINK-USD pair paints a bearish outlook, the LINK-BTC counterpart presents hope for possible bullish reversals. The primary reason is the breakouts from the downside resistance level that existed for around 469 days.
Afterward, the altcoin kick-started an upside move, leading to the 46,780 SAT high. Chainlink’s price struggles to move beyond the 38K SAT horizontal mark despite the breakout. This vital region previously offered support on December 2020 & 2021.
Nonetheless, the weekly Relative Strength Index stands at 50, and upside actions will likely push it beyond this neutral zone. Thus, LINK should climb beyond 38K satoshis to catalyze a bullish trend. Consequently, a price rejection from the resistance at 38,000 satoshis will see LINK price on a downside action, dipping toward the 23,000 satoshi mark.
Meanwhile, climbing beyond the mentioned resistance might translate to a solid bullish future for the token and an over 100% surge, welcoming the 62,500 satoshis high. That would mean a bullish price forecast for LINK prices.
To finalize, LINK-USDT is more optimistic than LINK-BTC because of bearish price action and a breach of horizontal support. Breakouts past the declining resistance would cancel the LINK’s bearish stance. Nonetheless, the asset’s response at the resistance near 38,000 satoshis may determine LINK-BTC’s trend.