Chainlink (LINK) Price Dip: Can Bulls Hold Above $20?
The cryptocurrency market experienced a recent downturn, potentially influenced by the upcoming first U.S. FOMC meeting, falling U.S. stock futures, and DeepSeek panic selling. Chainlink (LINK) wasn't immune, breaking its 4-hour support at $24 after a bearish change of character (CHoCH).
Chainlink Price Analysis: Key Support Levels
- Chainlink broke support at $24, now testing the $22 level, crucial for staying above $20.
- Weekly inflow transaction count is down 53%, despite a 103% surge in the last 24 hours.
This price movement followed several instances of breaks of structure (BOS) and equilibrium points. If buying pressure doesn't return quickly, Chainlink could fall below $22 and test lower supports, potentially reaching $18. Conversely, a recovery above $22 could lead to another push towards $24.
The short-term outlook for LINK hinges on its ability to maintain price above crucial support levels. A sustained fall below these levels could worsen the bearish trend, while a resurgence of buying could signal stabilization and a potential rebound.
LINK Inflow Transaction Count and Market Sentiment
While the transaction count increased by 103% in the last 24 hours, the weekly count shows a concerning 53% decrease. This drop could signal waning interest or a consolidation period before a further price dip. Historically, such decreases often precede price declines.
Sentiment analysis reveals a divergence. While general crowd sentiment is moderately bullish (1.65), professional investors or "smart money" show a more bearish stance (-0.76). Bearish sentiment from smart money often foreshadows price declines, regardless of optimistic retail investor sentiment.
This mismatch suggests potential volatility or further price drops if professional bearish sentiment persists. The upcoming trading sessions will be key to determining Chainlink’s next move.
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