Even though the market as a whole is recovering, Chainlink’s price is still stuck in a downward pattern, which makes people worry about its future. The price of Chainlink (LINK) has gone up 3.6% in the last 24 hours, and it is now worth $10.50. But technical signs show that the asset is still in a Bear Pennant, which is a bearish continuation pattern.
The rise in open interest (OI) of 0.91% and the price rise of 3.88% show that traders are still optimistic. However, on-chain measures show a different picture. It’s scary how different traders’ feelings are from what’s happening on the chain.
Chainlink Break Above $10.85 Critical
Messari Research says that Chainlink’s on-chain volume has dropped to a monthly low of $46.1 million. The only time this didn’t happen was when the market crashed on August 5. This drop says that there isn’t much going on in the blockchain, even though futures and spot traders are keeping the price stable.
The price of Chainlink is at a very important point. If the Bear Pennant pattern comes true, LINK could find support at $10.49. If the price keeps going down, it could reach $9.00 or even $5.50, which would be a 47% drop from where it is now.
The bearish view is supported by technical indicators. All of the exponential moving averages (EMAs) are going down, and LINK is selling below all of them. The Stochastic RSI is also in the overbought area, which suggests that there may be a short-term pullback or a continued downward trend. The fact that the %K and %D lines are coming together points to a possible bearish crossing.
But if LINK can break above $10.85, it could make the Bear Pennant useless and change the view to a more bullish one, with $12.04 and $14.50 acting as resistance.
