Chainlink price may soon experience troublesome times. If market conditions persist, a $5 LINK will be within reach.
Chainlink price signals a death drop
Chainlink price is displaying signs of an ongoing downtrend. The recent surge north following the weekend dip may have been the last before a much greater sell-off occurred.
Chainlink price currently auctions at $7.06. The bulls have failed to reconquer the recently flipped support zone at $7.30. Accompanying the recent rejection is also a bearish divergence on the Relative Strength index.
The bulls produced very little volume during the previous attempt to move higher. Traders who believe the recently established September lows at $6.32 are solid support should asses their risk properly. The Volume Profile Indicator’s lack of bullish activity can not only catalyze a sweep of the low,s but a capitulation event could arise if traders try to hold on in disbelief.
A sweep of the September lows could be the catalyst of a decline toward the expanding trendline that has acted as support throughout October. Currently, the trendline is poised to provide support at $5.70. If the 5.70 level does not hold, a $5.00 LINK price will be imminent.
Invalidation of the bearish thesis could occur if the bulls reconquer the $7.62 resistance level. In doing so, an additional 100% rally could ensue, targeting $15.
