Chainlink (LINK) is currently experiencing a decline in price after reaching highs of $8.26 last week. This drop comes as investors and analysts eagerly await the approval of Ethereum futures exchange-traded funds (ETFs), which many believe could drive interest in the crypto market. Despite the approval of nine ETH futures ETFs leading to a rally in Bitcoin, Ethereum, and Solana, Chainlink has seen its gains trimmed due to profit-taking activities.
To secure higher support, Chainlink bulls need to act quickly. The Moving Average Convergence Divergence (MACD) indicator suggests a bearish outlook, and traders may be inclined to short LINK if the MACD line crosses below the signal line. A drop towards the neutral 0.000 area would further reinforce the bearish grip and potentially trigger a larger sell-off.
However, there is potential for a bullish breakout if Chainlink retests the descending trendline and holds above all three moving averages on the daily chart. Analyst Michaël van de Poppe believes that a retracement to around $7 would be ideal for Chainlink before it can break out of its current range.
On the four-hour chart, Chainlink is currently below the 50 EMA resistance at $7.65. If bulls fail to hold the immediate support provided by the lower ascending trendline and the 100 EMA, a drop to $7 could occur before the weekend.
In conclusion, while Chainlink’s price has been affected by profit-taking activities, there is potential for a bullish breakout if it can secure higher support and hold above key moving averages. Traders should closely monitor market conditions and conduct their own research before making any investment decisions.
Hot Take: Chainlink Faces Challenges Amidst Profit-Taking Activities
Chainlink’s price has experienced a decline after reaching recent highs, primarily due to profit-taking activities in the market. While investors eagerly await the approval of Ethereum futures exchange-traded funds (ETFs), which could potentially drive interest in the crypto market, Chainlink has seen its gains trimmed. The bearish outlook suggested by the MACD indicator and the potential for a larger sell-off emphasize the need for Chainlink bulls to secure higher support quickly.
However, there is hope for a bullish breakout if Chainlink can retest the descending trendline and hold above key moving averages. Analyst Michaël van de Poppe suggests that a retracement to around $7 would be ideal before Chainlink can break out of its current range. Traders should closely monitor market conditions and conduct their own research before making any investment decisions.
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