- LINKUSD has consolidated for more than six months
- A bearish flag might form
- Bulls and bears should wait for a breakout before acting
Chainlink provides data to smart contracts on the blockchain, and LINK/USD is in a long-term consolidation following an abrupt selloff. Both bulls and bears must have lost their patience, but such consolidations are interesting to trade because they usually appear ahead of another big market move.
Unlike other cryptocurrencies, LINK did not make new lower lows in the second half of 2022. Instead, buyers appeared on every attempt to trade below $6.
So that is a bullish accomplishment. On the flip side, every bounce was not strong enough to break the previous lower high. Therefore, bears appear to still be in control.
2023 brought a much-needed rally to the cryptocurrency market. Bitcoin, in particular, surged, and its bullish price action translated into bullish movements on other coins too.
Indeed, LINK/USD rallied from $6 to $8, only to meet new sellers there. In other words, the price action evolves inside a horizontal channel, and until a breakout, the chances are that it will go nowhere, only frustrating both bulls and bears.
Does the horizontal channel suggest anything?
Whenever a horizontal consolidation appears on a chart, the technical trader should look on the left side for trending conditions. In this case, a bearish trend is present, meaning that the horizontal consolidation might be part of a bearish flag pattern.
That is one scenario.
Another is that the market is simply carving a bottom. But for that to be true, bulls should wait for the price to break above $9.5, and ideally above $10, before going long.
The measured move of a horizontal channel is the channel’s width. So, just look for a breakout in either direction and target the measured move.
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Chainlink has temporarily lost the support at $6
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Michaël Van De Poppe expects the price to rally to $16 next year
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LINK faces pressure, and the momentum is bearish
Chainlink (LINK/USD) was trading $5.74 as of press time. Technical indicators show that the cryptocurrency has lost support at $6, although a bear momentum is yet to be confirmed. Will the new year spell doom if bulls do not recover above $6?
Potentially yes, since LINK bulls have always defended $6. Any time the price crashes below this level, buyers arrest it quickly, making it an important zone. A loss of $6 will, therefore, be a bear trigger for LINK in early 2023.
Crypto analyst Michaël Van De Poppe expects Chainlink to be bullish next year. According to Poppe, Chainlink will rally to $16 if bulls reach a resistance area of $7.78. However, Poppe says LINK can fall below $5 before igniting a bullish push.
LINK price and technical outlook
LINK is consolidating within a range of between $6 and $8. Any break below the range low could take the cryptocurrency down. Bulls will gain interest if the cryptocurrency breaks above the range low.
Technically, selling pressure is high on LINK. The RSI points down and remains near the oversold region. A further decline heightens the bear pressure, with LINK now staring at a possible drop below the consolidation. The new few days of trading will be exciting to watch how LINK behaves around the support.
Can LINK recover the $6 level?
Although a price below $6 would be considered bearish for LINK, we need to watch the close of the daily candlestick. A bullish reversal will be confirmed if the candlestick closes with a long wick on the lower side (bullish pin bar).
Conversely, a bear market will be confirmed if LINK closes with a long wick on the upper side and the price breaks further lower. For LINK bulls, it is important to wait for confirmation.
Where to buy LINK
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.
Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.
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Chainlink fell by 5% on Wednesday amid a staking feature launch
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The cryptocurrency has set $6 as the important support zone
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LINK could continue to slide further, but whale accumulation is a bullish trigger
Chainlink (LINK/USD) staking is now here. According to a tweet on the official Twitter account, Chainlink Staking v0.1 is live on the Ethereum mainnet. The early access program is stated to be available to about 25 million, who can stake and earn rewards. Chainlink says adding the staking feature will improve the network’s security and attract more users.
Apparently, Chainlink staking has been a much-anticipated development. Investors bought LINK massively when the blockchain announced Chainlink 2.0 Economics with the staking service back in April. That underlined the enthusiasm around the new feature, which kicked off on December 06. Consequently, on-chain data shows that whales are accumulating LINK.
According to Santiment, whales and sharks hold the largest percentage of Chainlink tokens in supply in five years. The large investors have accumulated 26.8 million LINK worth $194.3 million in the last two months. That represents an increase of nearly 13%.
Conversely, in the past two months and extending to May, LINK price has defended the $6 support level. The level has become so crucial that buyers have arrested the decline quickly every time sellers try to break below. To buyers, this is the most important level to buy LINK and hold ahead of a potentially explosive move. But as the staking feature launches, LINK has fallen slightly and was down by an intraday of 5%.
LINK struggling at the moving averages
A technical outlook shows LINK trading at or slightly below the 20-day and 50-day moving averages. The RSI has shifted to below the midpoint, suggesting the entry of sellers or profit-taking by buyers.
What next for LINK?
We remain bullish on LINK as long as $6 support continues to hold. With increased buying, it is just a matter of time before we see a bullish LINK. A recovery could occur at the moving averages or $6 support. Wait for bullish reversal signals to buy LINK.
Where to buy LINK
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.
Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.
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Chainlink has gained by 14% in the week
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The Chainlink team issued an update regarding its upcoming staking feature
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The native token faces resistance at $8
December started positively for the native token of Chainlink (LINK/USD). The cryptocurrency added an intraday of 2.45%, taking the weekly gains to 14%. The gains are fueled by a positive update by Chainlink on December 1.
According to the announcement, Chainlink Staking v0.1 will launch on the Ethereum mainnet on December 6. This is an important development as staking has been touted as a game changer under Chainlink 2.0 Economics. The staking feature was at least expected this December. However, Chainlink made an update regarding the lock-up period. Rather than the 12-24-month lock-up period, the team settled for a lower 9-12 months. Why is it important?
Lock-up is crucial for a staking service. It is the main mechanism for maintaining stable collateral for blockchain networks. However, prolonged lock-up can attract backlash from users unable to withdraw their assets. The latest update is important to Chainlink users looking to earn rewards by staking their tokens on the platform.
Chainlink recovery back to $8 ahead of staking launch
LINK has initiated recovery along a short-term ascending trendline on the daily chart outlook. At $7.6, LINK trades slightly below a crucial resistance at $8.
LINK moved above the 20-day and 50-day MA. The area between $6 and $8 has seen flattening moving averages, indicating it is the zone where buyers and sellers match up. However, buyers are in control in the short term, as indicated by a recovery above the moving average. The RSI has also moved above the neutral zone, in line with the buyer’s strength.
Are further gains possible?
The resistance at $8 will remain crucial for LINK investors. A breakout would usher in further recoveries. The prospects of the upcoming staking feature on Chainlink will be crucial for a potential breakout.
On the flip side, the short-term rally may be cut short if bears take control of LINK price at $8. That would force a correction to the moving averages or $6 support.
Where to buy LINK
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.
Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.
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LINK rose by 4% on Friday amid a five-day winning streak
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The cryptocurrency faces some resistance at the 50-day MA
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Investors should buy on potential correction and target $8
An intraday gain of 4% on Friday was enough to take the price of Chainlink (LINK/USD) to $6.9. The token is clearly bullish since overcoming resistance at $6. The cryptocurrency has printed green candlesticks for the past five days. There are no clear fundamentals for the surge, but expectations around Chainlink 2.0 Economics could be fueling the demand for LINK. What lies ahead?
Chainlink Staking (v0.1), one of the key changes introduced under Chainlink Economics 2.0, is very close. The developers announced that the staking feature would go live on the Ethereum mainnet on December 06. Qualifying addresses can stake up to 7,000 tokens in a capped v0.1 staking pool. The staking pool will then be granted General Access on December 08, 12 PM ET. From there, anyone can stake to the initial cap of 7,000 LINK tokens per address. The staking pool is initially capped at 25 million LINK tokens or 5% of the circulating supply.
The start of staking will allow users to participate in the growth of the Chainlink ecosystem. Users will commit their tokens to smart contracts for rewards. As with most changes, native tokens tend to overperform ahead of the key developments. Potentially, this is the reason LINK is witnessing a bullish surge.
LINK attempting recovery above the moving averages
A technical outlook of the Chainlink token shows it is on a short-term rally. The token’s price has moved above the 20-day moving average.
A bullish MACD crossover also occurred, with the indicator showing improving momentum.
Will LINK stay bullish?
The recovery above $6 gives Chainlink a chance to remain bullish in the medium term. However, the 50-day moving average offers resistance. It would be interesting to watch whether bears will force a correction at the 50-day MA.
A correction would attract buyers as long as the LINK price remains above $6. In the medium term, LINK could rise to find the resistance at $8.
Where to buy LINK
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.
Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.
Chainlink (LINK/USD) is now in imminent danger of plunging to a new low in the year. That was after the cryptocurrency lost the support of $6, a crucial level it has held since May. The cryptocurrency exchanges hands at $5.75. This is not the lowest price in the year, giving hopes that it could still defend the support. However, going by the price action, a breakout has already occurred, and a bear market is likely to continue.
Chainlink Labs did its part to counter the risks brought by the collapse of FTX. On November 10, the team launched a proof-of-reserve product to address future trust issues. The PoR product will help verify the asset reserves of the centralised exchange, its cross-chain collateral, and off-chain bank account balances. It also helps to check the exchange’s real-world asset reserves. As a transparency measure, Chainlink seems to heed the increased calls for reserve disclosure. Binance CEO Changpeng Zhao has previously backed the disclosure following the collapse of FTX.
Despite the move meant to reassure investors, LINK has succumbed to the bear market. The monthly high of nearly $9.5 has since been followed by a nearly halving of the cryptocurrency price.
LINK price outlook as weakness mounts below $6
A clear breakout zone at $6 support occurred on the daily chart, confirming a bear market for LINK. The RSI is yet to hit oversold levels, implying that LINK has room to fall further. Should bulls fail to arrest the decline and take LINK back to $6, the next level to watch would be $4.5.
When to buy LINK?
The market is very bearish for Chainlink token. A breakout to the downside at the support and a weak crypto sentiment reinforces a bearish bias.
It is not yet time to buy Chainlink until it settles at suitable support. A potential recovery to or above $6 could attract buyers. Otherwise, investors should consider buying LINK at $4.5 based on prevailing price action and sentiment.
Where to buy LINK
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.
Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.
Chainlink (LINK/USD) is back in the consolidation zone – between $6 and $8. The token had last week broken past $8 to $9.45, igniting a potential bull run. Following a crypto crash, LINK is back in the consolidation zone. But how do the latest developments help?
LINK staking has been touted as a game changer under Chainlink Economics 2.0. Chainlink 2.0 promises, among other things, a new era of cryptoeconomic security, value, and sustainable growth. The development is key to boosting the adoption of DeFi services and the Web3 ecosystem. LINK staking is core to Chainlink Economics 2.0.
As we already know, the Chainlink community has been gearing up for LINK staking. On November 9, Chainlink developers issued an update that the staking service is on track for launch in December. Stakers can now check their eligibility from Monday.
The insights around LINK staking could, at least, support the token as the market remains in the red. Below is the technical outlook:
Chainlink retests the bottom of the consolidation channel at $6
Source – TradingView
Chainlink retested the $6 support as the price crashed. The token is recovering, but we cannot issue a bull call. The resistance at $8 remains crucial as the token has been resisted severally at that level. The RSI shows some upside, despite bears remaining in control.
Should you buy Chainlink now?
There are positive fundamentals around the Chainlink token. However, the token is submerged in the wider bear market.
Although bulls have defended the $6 support well, the price recovery could be contained below $8. That could allow LINK to consolidate further before enough buyers enter the market to force a breakout above the resistance. We recommend patience before buying LINK until it finds a directional movement.
Where to buy LINK
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.
Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.
Chainlink (LINK/USD) “below $10 feels criminal.” Those are the words of anonymous crypto analyst Kaleo, who has 538,000 Twitter followers. According to the analyst, Chainlink is experiencing accumulations on top of major support. For this reason, the analyst feels Chainlink is a big bargain at or below $10.
The comments come when Chainlink is witnessing an increase in whale activity. Santiment data indicates that whales were very active, with 33 transactions of more than a million dollar value over the weekend. The whale activity was the highest since June 27th.
It is no coincidence that the LINK price is going higher. As of press time, LINK was trading at $8.45, a slight correction from a nearly 3-month high of $9.1 over the weekend. A quick technical outlook shows that the Chainlink token had broken past a key resistance level. Investors could look to accumulate more amid increasing buying pressure.
Is a golden cross coming for LINK?
Source – TradingView
On the daily chart, LINK has tested the $8 resistance-turned-support. The token is pushing higher from the support zone. The MACD indicator shows that momentum is strong, suggesting a higher price is on the horizon.
Another critical technical indicator that will sound bullish for LINK is the moving averages. From the technical outlook, the 50-day MA is nearing a cross-over (golden cross) over the 200-day MA. If that happens, it will be the first time we see a golden cross on LINK this year. The last time the 50-day MA was above the 200-day MA for LINK was in December 2021. A golden cross is an indication of upcoming lasting bullish momentums.
Should you buy LINK now?
LINK is at an attractive buy zone. A breakout followed by a retest of the support builds a strong bull case for the cryptocurrency. The technicals are reinforced by increased whale activity, showing that buyer interest remains high.
From the current level, the next target for LINK will be $9.5 and $11. Targets at $12 and $18 will depend on the prevailing crypto sentiment.
Where to buy LINK
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.
Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.
For yet another time, Chainlink (LINK/USD) is showing that it is punching below its knees. LINK has been trading within a tight range, with bearish pressure pushing the cryptocurrency below an ascending trendline. The token has since recovered, and a strong bullish momentum is building. So what happened?
LINK added more than 7% on Friday, taking the total gains in the week to 20%. The gains came after crucial cryptocurrency news for Chainlink. According to a Thursday announcement, Chainlink has partnered with Seedify Fund. The entity is a major gaming, metaverse, and NFT launchpad and incubator. Seedify Fund will rely on Chainlink’s oracle services to power growth in NFT and GameFi sectors.
Besides, Chainlink staking remains a key price trigger for growing adoption, boosting the native token. As of the end of October, the number of addresses holding at least 100,000 LINK hit 459, the highest since 2017. The rising investment reflects optimism around Chainlink staking, expected by the end of 2022. Consequently, amid the recent LINK struggles, positive developments could support the price towards the year-end.
LINK crosses above the 200-day MA for the first time since January
Source – TradingView
Technically, LINK has broken past the $8.0 resistance in a bullish push. The cryptocurrency currently trades at $8.4. Buyers are active on the token, with an RSI reading of 65, near the overbought region.
A key bullish indicator is the price recovery above the 200-day moving average. The last time that LINK traded above the longer-term MA was mid-January 2022.
What next for LINK?
A breakout at $8.0 will be confirmed by closing the candlestick above the crucial resistance. That will see $8.0 become a support zone and encourage more buyers to snap the token.
On the flip side, in a less likely scenario, LINK will close below $8.0. In such a case, the price may consolidate before gathering momentum to push above the resistance again.
Buyers need to be patient before buying LINK. However, the bottom line is that LINK is about to turn bullish, and early birds will catch a worm.
Where to buy LINK
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.
Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.
Rich investors are accumulating Chainlink’s native token (LINK/USD). The data, according to the Santiment analytics, show that the number of LINK whales is now at the highest level in five years. Accordingly, whales holding $700,000 or more worth of LINK tokens is 458. The rise in the whale addresses happened as the price touched $7. Does that point that the price level is attractive?
Well, Chainlink has been trading within tight ranges. The cryptocurrency has been oscillating within $7 for the past week since getting rejected at the $8 resistance. However, LINK has also been defending a support zone at $6. That suggests whales see a potential opportunity at or slightly above $6.
Fundamentally, LINK has maintained stability since announcing Chainlink 2.0 in June. The milestone brings key changes, including staking on the platform. Whales could also be reading from the script of Chainlink being selected for SWIFT’s token infrastructure.
Chainlink is growing too. Earlier this month, Chainlink Labs announced that it had expanded to more than 1500 projects on 15 blockchains in the third quarter. As the growth occurred, Eric Schmidt, former Google CEO, expressed his admiration for Chainlink. In his latest comments, Schmidt says that Chainlink has got the architecture right to grow. Investors could see an opportunity in LINK before an explosive move occurs.
LINK retests a trendline after a bearish breakout
Source – TradingView
On the daily chart, LINK price is mixed. The cryptocurrency crashed below a short-term trendline recently. The token has recovered slightly, with price action showing it is retesting the trendline. The price has also been rejected by the 50-day MA, as shown by the bearish tailed bars.
Turning to the MACD indicator, LINK is slightly bullish. The indicator shows that momentum has slightly improved, though the token remains in the bear zone.
Which way, LINK?
It is not yet time to buy LINK. There is a weak momentum, although the token is maintaining stability. However, a long-term investor should be enticed by the $6 price bottom and buy at any zone above it.
Where to buy LINK
eToro
eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.
Bitstamp
Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.
Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.