The price of the LINK cryptocurrency has been a major and very popular topic in the latest altcoin news. However, despite posting gains north of 100% this year, Chainlink could decrease because of a recent technical structure downgrade.
The truth is, Chainlink (LINK) is already seeing an intense decline today which has led it to plummet by over 6%. Today’s downturn marks an extension of the one which was first incurred a couple of days ago when the coin tapped highs of nearly $4. The strong resistance at this level played out and proved to be insurmountable, helping fuel further downsides in the days ahead.
All of this comes as one analyst set an incredibly low target for the coin recently, alerting the market and surprising many people of a potential drop to $1 for the LINK token due to a massive rising wedge pattern which has led it to a high-time-frame resistance option.
At the time of writing, the LINK price is stable above $3.60 but Chainlink could decrease in the near term because of the downgrade. Even with today’s stability, LINK managed to shed a couple of percentages off as it declined from the $3.80 highs set yesterday.
On a weekly timeframe, the cryptocurrency seems to be showing even greater signs of bearishness as it declined from highs of nearly $4 which were set only two days ago. This is why Chainlink could decrease further in the cryptocurrency news.
One popular analyst on Twitter spoke about this phenomenon, explaining that it could soon fall further as it begins pushing below its near-term support. The downtrend could lead the LINK price to as low as $2.90 against the USD trading pair, according to the analyst.
“LINK: On BTC pair -> broke south, which is not bad after such a move. Levels to hold; 46K Satoshi, holding & test 49K is likely. Losing -> 43 / 40K satoshis are next. On USDT pair -> need to hold $3.45-3.50, otherwise $2.90 is likely.”
On $BTC pair -> broke south, which is not bad after such a move.
Levels to hold; 46K Satoshi, holding & test 49K is likely. Losing -> 43 / 40K satoshis are next.
On $USDT pair -> need to hold $3.45-3.50, otherwise $2.90 is likely. pic.twitter.com/Gv9Mf9VvSJ
— Crypto Michaël (@CryptoMichNL) April 27, 2020
So, there are multiple calls about Chainlink dropping to $1 now, which is why there is a possibility for this scenario to happen. If you are following our cryptonews, make sure to trade carefully and invest only the amount you can afford to lose!
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