A number of analysts are preparing for an even larger dip in Chainlink price, even after a 20% correction
Chainlink price has suffered a strong pullback since last week’s high of $ 20. This altcoin is currently trading for $ 16, 20% lower than its high after experiencing a flash crash. Few traders are willing to take short positions on the cryptocurrency due to its explosive volatility.
Even so, many analysts think Chainlink is likely to suffer a more significant pullback in the coming days. At its highest $ 20 it just traded, LINK is trading about 1,000% higher than its March investment low.
Chainlink price is getting ready for a more significant bull run
Some analysts are gearing up for an even bigger Chainlink sale, even after a 20% correction.
Crypto trader Posty shared the chart below, showing LINK’s recent price action has formed the first lower low and potential lower high in this uptrend. This means that the bullish market structure that Chainlink had been broken, which opens the floor to a Fibonacci retracement:
This is the first lower low and potentially lower high that LINK has made in a long time…
It will be interesting to see if LINK have the momentum to reclaim this level
— Posty (@PostyXBT) August 20, 2020
Several other commentators have shared this skepticism. Analyst for “Steve” says a pullback for Chainlink to $ 13.00 is imminent,
“This is a very unbiased & non-marine opinion on LINK. I have no business FUDing the project, nor do I need to support it in a culty way. Facts are that we had a HUGE run-up and are now pulling back, which is good. I do see more blood coming through. Simple TA shows that we have no supports tested on the daily. Our first “bigger support” is around $ 8.50 (0.618 Fib Level). The minimum pullback I am expecting is to $ 13.00. We also broke the daily trend for Chainlink.”
LINK’s on-chain fundamentals remain in good shape, although the correction is ongoing, and expectations will continue to decline.
Chart of LINK’s daily active address count vs. other cryptocurrencies like ETH, KNC, BAND, and SNX | Source: Santiment
Analysis firm Santiment has reported that the number of unique addresses dealing with Chainlink remains high, boding well for the price action:
“$ LINK has held up well against #altcoins this past day since its -16% Monday dump. A major reason is a fact that its unique addresses circulating transfers on the network have remained high compared to other #alts.”
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