Group Of Analysts Believe That Chainlink Will Crash In The Near Term

A group of analysts believe that Chainlink will decline even further after the recent 25% drop in the days ahead. LINK suffered a strong retracement since hitting the $20 level last week as we reported in the chainlink news.

There’s a group of analysts that are willing to take short positions on the cryptocurrency because of its volatility as they believe LINK will crash further in the upcoming days. At the high of $20, LINK was trading around 1000% higher than the March lows. A number of analysts are preparing for the larger dip in price after the 20% correction. One trader in particular shared a chart below showing that the recent price action formed the lower low and a potential lower high in the uptrend. This means that the bullish market structure LINK had got broken which opened the door for another retracement:

“This is the first lower low and potentially lower high that LINK has made in a long time… It will be interesting to see if LINK have the momentum to reclaim this level Fair play to @Pentosh1 on his short call. I’m not that brave and would rather buy dips in this market.”

link addresses — Chart of LINK’s daily active address count vs. other cryptocurrencies like ETH, KNC, BAND, and SNX

The skepticism is also shared by a lot more commentators. One analyst under the name “Steve” said that a pullback for Chainlink to $13.00 is imminent:

“This is a very unbiased & non-marine opinion on LINK. I have no business FUDing the project nor do I need to support it in a culty way. Facts are that we had a HUGE run-up and are now pulling back, which is good. I do see more blood coming though. Simple TA shows that we have no supports tested on the daily. Our first “bigger support” is around $8.50 (0.618 Fib Level). The minimum pull-back I am expecting is to $13.00 We also broke the daily trend for Chainlink.”

link price — Chart of LINK’s recent price action with analysis by trader Posty

Chainlink’s on-chain fundamentals are good despite the corrections and the expectations of another downside. Blockchain analytics firm Santiment reported that the number of unique addresses that transact LINK remains higher, preparing for a price action:

“$LINK has held up well against #altcoins this past day since its -16% Monday dump. A major reason is the fact that its unique addresses circulating transfers on the network has remained high compared to other #alts.”

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