Bitcoin
BTC$64 567.36

-0.38%

Ethereum
ETH$3 417.53

-0.97%

Tether
USDT$1.000110

-0.03%

Binance Coin
BNB$572.36

-0.70%

Solana
SOL$156.80

-2.13%

XRP
XRP$0.628046

7.62%

Chainlink (LINK): Divergences Are Causing Concern


June 2020

Last May was the time when Chainlink came into the limelight and to the top of global rankings, as it had engaged in an aggressive bull rally, which since then became a characteristic feature of this cryptocurrency for the decentralized oracle service. However, steep corrections are also inherent to LINK as the price keeps on being pulled down to the same level at $1.7, which now serves as long-standing support. Therefore, despite the overall positive outlook regarding this coin and its immense potential for gains, we would refrain from putting Chainlink in an absolutely bullish framework because its price behavior is still slightly erratic, and very volatile in both directions, as the massive highs are consistently being followed by the equally deep troughs. But out of all top altcoins, LINK is the most promising one, and surely a clear candidate for replacing Litecoin, and perhaps Bitcoin Cash and Bitcoin SV, at the very top of the ranking table.

Divergences flash a bearish signal


When analyzing the 1-year LINK/USDT chart, we established three crucial levels with which the price has been actively interacting since LINK’s emergence on the big scene: $1.7, $3.06, and $3.73. These are the magnet zones towards which the price has been pulled during the last twelve months.

1-year LINK/USDT chart

Right now, staying above $3.73 is of the essence for Chainlink because, in doing so, it would establish a foundation for the move above $4.7, its greatest achievement so far, and in the direction of the new all-time high. At the moment, the coin seems to be coping with that task quite well, being priced at $3.97, as of the time of writing. But, as we have already noticed, LINK displays proclivity to making deep troughs after each substantial price appreciation, so the possibility that the price would become bearish in the coming two-three weeks must not be disregarded. Even if Chainlink would go above $4.7 and establish a new high, we expect that the price would ultimately retrace back to the area between $$3.8 and $4.1.

The moving averages profile is bullish, with particular emphasis being placed on the trend-setting 99-day EMA and 200 EMA. These moving averages are currently heading northward with the price staying above them, a clear sign that at this particular moment, the bulls are having their say in that specific market. The bullish notion is also supported by the fact that MACD has been above the zero line since the middle of April. But the very same MACD shows a worrying sign for those who plan to enter a long trade.

Notice how the indicator went bearish right after the price penetrated the resistance at $3.73 for the second time, all the way through to the price level at $4.1, whereas the price made a new high. The MACD divergence isn’t considered a reliable trading signal in itself, but when combined with a similar divergence on the 14-period RSI, which began to emerge even earlier, back when the price was testing the support at $3.06, it raises concern.

This is the first time when such clear-cut divergences emerged simultaneously on both indicators, the factor that influenced our prediction, in accordance to which we expect a significant pullback in the coming days that will take Chainlink below the 99 EMA and quite possibly, to the support at $3.06, thus marking a 23% negative move from LINK’s current position - the move below that level is improbable. The rise to $4.5 - $4.7 would mean the cancelation of the bearish scenario and the reviviscence of bullish agenda.

Author: Alex Paulson for Crypto-Rating.com

Related

The 2025 - 2030 Chainlink (LINK) Price Prediction: The Exponential Growth Has Just Begun
The 2025 - 2030 Chainlink (LINK) Price Prediction: The Exponential Growth Has Just Begun
Chainlink (LINK): The Ongoing Bullish Reversal
Chainlink (LINK): The Ongoing Bullish Reversal
Chainlink (LINK): Starts a Slow Recovery After Recent Collapse
Chainlink (LINK): Starts a Slow Recovery After Recent Collapse
Chainlink (LINK): The End of Bullish Honeymoon
Chainlink (LINK): The End of Bullish Honeymoon
Chainlink (LINK) Keeps Trending Strongly
Chainlink (LINK) Keeps Trending Strongly
Chainlink (LINK) Stays Loyal to the Bullish Side
Chainlink (LINK) Stays Loyal to the Bullish Side
Chainlink: Three White Soldiers Pushing the Price Up
Chainlink: Three White Soldiers Pushing the Price Up
Chainlink Just Made the New All-Time High
Chainlink Just Made the New All-Time High
ChainLink (LINK) Pushes High on the Partnership Deal
ChainLink (LINK) Pushes High on the Partnership Deal

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 77.6% 43 $64 567.36 -0.38% 12.55% $1 273 722 979 629 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 72% 50 $3 417.53 -0.97% 10.31% $410 859 870 677 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 93.6% 1 $1.000110 -0.03% 0.02% $113 236 960 423 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 78% 43 $572.36 -0.70% 9.35% $84 470 480 429 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 81.6% 36 $156.80 -2.13% 11.26% $72 781 603 483 SOL 7 days price change
6 XRP (XRP) XRP XRP predictions 78% 43 $0.628046 7.62% 43.35% $35 048 347 743 XRP 7 days price change
7 USD Coin (USDC) USDC USD Coin predictions 92% 1 $1.000063 0.01% 0.01% $33 802 025 670 USDC 7 days price change
8 Toncoin (TON) TON Toncoin predictions 86.4% 13 $7.16 -2.83% -1.25% $17 979 891 294 TON 7 days price change
9 Dogecoin (DOGE) DOGE Dogecoin predictions 73.2% 55 $0.123284 -1.89% 14.54% $17 895 498 284 DOGE 7 days price change
10 Cardano (ADA) ADA Cardano predictions 77.6% 36 $0.442834 0.57% 15.09% $15 892 288 247 ADA 7 days price change
11 TRON (TRX) TRX TRON predictions 77.6% 44 $0.134153 0.33% 2.31% $11 685 315 797 TRX 7 days price change
12 SHIBA INU (SHIB) SHIB SHIBA INU predictions 79.2% 37 $0.000019 -3.26% 15.07% $11 069 963 486 SHIB 7 days price change
13 Avalanche (AVAX) AVAX Avalanche predictions 75.2% 41 $27.86 -1.26% 7.00% $10 997 136 424 AVAX 7 days price change
14 Lido stETH (STETH) STETH Lido stETH predictions 96% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
15 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 94% 1 $0.116354 -0.46% 0.23% $10 171 995 609 WTRX 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2024 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.