The bullish momentum in Chainlink (LINK), which caused the asset to spike Unpleasant $6.75 on May 18, 2023, ended May 19. From May 19 to date, LINK registered bearish pressure as the price gradually declined each day until May 24, when it closed at $6.33.
Currently, as of May 25, 2023, the price of Chainlink stands at $6.30 CoinMarketCapindicating a further decline in the past 24 hours.
LINK Bears dominate the market with strong momentum
LINK is a prominent cryptocurrency that bridges the gap between smart contracts and real-world data. Chainlink’s native token, LINK, has shown a negative performance during last day’s trading session. Notably, the asset has been on a downtrend for the past seven days, resulting in a loss of 6.25%.
These losses suggest that sellers are putting pressure on buyers beyond their ability to hold the price, leading to downward pressure on LINK’s price. Investors’ market confidence had waned, resulting in a steady price decline over the last seven-day trading session.
Based on social sentiment indicators, CFGChainlink (LINK) is showing overall negative sentiment with a reading of 17.5%. This implies negative conversations on social media or a lack of investor enthusiasm for LINK.
Bearish trendline pattern
LINK has been on a bearish trendline chart pattern ever since April 18 to date resulting in a constant drop in price within the context of the 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 further price declines and consider strategies that fit a bearish market outlook.
Due to the increased selling pressure, LINK has broken the first primary support level at $6.2 and is moving into the next support level at $5.9. With the current bearish momentum, the asset may soon reach this near-term support.
LINK Technical analysis using indicators
LINK’s trading chart for May 25 shows that the asset’s market trend is bearish. The asset trades below 200 days and 50 days Simple moving averages (SMA), indicating bearish market sentiment.
This indicates that LINK will experience bearish momentum in both the long and short term. Investors can see this as an opportunity to take profits, which will cause a further drop in prices.
LINK’s Relative Strength Index (RSI) is currently at 37.73, indicating a neutral market. However, the trendline is moving downwards, indicating an increase in bearish momentum. It is worth noting that an RSI below 30 means strong selling pressure, indicating that bears are dominating the market, while a level above 70 suggests that bulls are dominating.
Finally, the moving average convergence/divergence (MACD) trading below the signal line confirms the bearish moves in the market. This indicator suggests high bearish momentum in the market, just as the RSI shows.
Featured image from Pixabay and chart from Tradingview.com