Chainlink (LINK) Price Correction Expected, Investors Pulling Back
Chainlink (LINK) is showing signs of a potential correction in the near future due to a bearish reversal pattern emerging. However, investors should remain cautious as this expected downturn may face some resistance, leading to a less severe correction.
Evidence of Chainlink Investors Withdrawing
Recent days have seen a correction in Chainlink’s price, bringing it to $17.2 at present. This downward trend is likely to continue, influenced by several factors, including a decrease in investor participation.
- Active addresses on the Chainlink network have dropped by almost 44.7% in the last two weeks, from 5,560 to 3,070, indicating a decline in investor interest as network activity slows down.
- The Relative Strength Index (RSI) is currently in the bearish zone below 40, suggesting that Chainlink’s price is at risk of a significant correction based on this momentum oscillator’s reading.
Chainlink Price Forecast: Anticipating a 21% Decline
From a technical standpoint, Chainlink is gearing up for another corrective phase with the formation of a head-and-shoulders pattern on the daily chart, a bearish reversal indicator. The critical support level lies at $17.85, with a sustained breach below indicating a potential price drop to $14.02, constituting a 21% decrease.
- A notable accumulation of LINK tokens between $15.56 and $17.48 may hinder the price’s decline as investors avoid selling at a loss.
- For Chainlink to reverse this bearish trend, it must maintain levels above $17.85 by possibly surging higher to invalidate the anticipated correction.
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