Chainlink (LINK) has enjoyed a bullish trend for a significant part of its existence, but this trend seems to have come to an end recently. The price of LINK has slumped, with bears overpowering bulls, and investors are left questioning what the future holds for the asset.
Over the last few weeks, there has been a significant decline of 24.55% in the Chainlink (LINK) market. On 18th April 2023, LINK fell from $8.795 to a low of $6.635, changing the trend in favor of bears.
LINK is currently trading in the red on 8th May 2023. At the time of writing this article, the price stands at $6.66, indicating a decline of 3.31%. Its 7-day price gains have also declined, standing at a loss of 3.44%.
The LINK price began a downward trend from 19th April, when it lost the $8 dollar price mark to fall to $7. It further dropped to $6.91 and $6.99 on 1st and 2nd May, respectively, before regaining the $7 price. However, it continued to decline, currently standing at $6.94.
The current Chainlink fear and greed index stands at 55. This sentiment indicates that the LINK market is currently neutral or slightly optimistic. One of the key factors contributing to the bearish sentiment around LINK is the overall market trend.
The cryptocurrency market has been very volatile over the last two weeks, with many assets, including Bitcoin and Ethereum, experiencing significant price declines.
It remains uncertain whether bulls will regain power to drive the LINK price upwards or if bears will continue to dominate the market.
The Chainlink trading chart for 8th May 2023 shows that the market trend is bearish, and LINK exhibits negative momentum. The asset is currently trading below its 200-day and 50-day simple moving averages (SMA), indicating a bearish trend in the market. This also suggests that both long-term and short-term trends are bearish.
The LINK price is below the average price of the past 50 and 200 days, and the selling pressure in the market is high. The Relative Strength Index (RSI) currently stands at 38.68, indicating that LINK currently has low selling pressure. An RSI below 50 suggests that bears are in control of the market.
Finally, the MACD line is trading below the signal line, indicating that sellers have more control than buyers. The MACD histogram further confirms the bearish sentiment, as it is below the zero-line. If bulls cannot maintain selling pressure, the momentum will continue.
Technical analysis/indicators are subjective and do not guarantee future performance. They should be used in conjunction with other forms of analysis tools.
