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Bullish momentum in Chainlink (LINK) fueled the asset To $6.75 on May 18, 2023, Expires May 19. Since May 19, LINK has entered a bearish trend, as the price gradually declined until May 24, when it closed at $6.33.
Currently, the Chainlink price on May 25, 2023 is at $6.30 coinmarket capIndicating further downside in the last 24 hours.
LINK bears dominate the market with strong momentum
LINK is a leading cryptocurrency that bridges the gap between smart contracts and real-world data. Chainlink’s native token, LINK, has performed negative in the past trading session. Notably, the asset has been on a downtrend in the last seven days resulting in losses 6.25%,
These losses suggest that sellers squeeze buyers beyond their ability to maintain the price, putting downward pressure on the price of the link. The market confidence of investors was low, resulting in a steady decline in the prices in the last seven days’ trading session.
Based on social sentiment indicators, cfgChainlink (LINK) displays a general negative sentiment with a reading of 17.5%. This refers to the lack of enthusiasm among investors towards negative social media conversations or links.
bearish trendline pattern
LINK has been on a bearish trend line chart pattern since then 18 April To date, this has resulted in a steady decline in the price in the context of a downtrend.
This pattern is characterized by a series of lower highs and lower lows, indicating continued selling pressure and a lack of bullish momentum. Traders and investors can interpret this pattern as a signal to anticipate a further decline in price and consider strategies that align with a bearish market outlook.
Due to increasing selling pressure, LINK broke the first primary support at $6.2 and is moving towards the next support at $5.9. With the current bearish momentum, the asset may soon touch this support in the near term.
Using LINK Technical Analysis Indicators
LINK’s trading chart for May 25 shows that the trend in the asset market is bearish. The asset trades below the 200-day and 50-day simple moving average (SMA), suggesting a bearish market sentiment.
This indicates that LINK will experience a bearish momentum in both the long and short term trends. Investors may see this as a profit-taking opportunity, which will push the price further down.
The Relative Strength Index (RSI) for LINK currently stands at 37.73, indicating a neutral market. However, the trend line is moving down, suggesting an increase in bearish momentum. It is worth noting that an RSI below 30 indicates strong selling pressure, indicating that the bears are in control of the market, while a level above 70 indicates that bulls dominate.
Finally, moving average convergence/divergence (macd) trading below the signal line confirms the bearish move present in the market. This indicator suggests a high bearish momentum in the market, as the RSI shows.
Featured image from Pixabay and Chart from Tradingview.com
