Chainlink (LINK) managed to trim its losses after it made a bounce back despite the continuing uncertainty in the crypto market caused by Bitcoin and Ethereum’s recent respective declines.
According to data from Coingecko, at the time of this writing, the crypto asset is changing hands at $6.48 and has been up by 3% for the past 24 hours.
Here’s a quick glance at how LINK has been performing this month:
Chainlink relinquished the $9 territory following the recent collapse of the crypto market
LINK made a small recovery that pushed its trading price above the $6 marker
Technical indicators point towards another bearish momentum for LINK
As it reclaimed the $6 marker, LINK was able to cut its seven day – deficit, from 40% last week to just 26.9% over the last seven days.
It can be recalled that after climbing all the way to $9.47 on November 8, the altcoin, along with its fellow digital currencies, suffered and plummeted all the way down to $5.69.
Currently, Chainlink ranks 23rd in terms of market capitalization, with an overall valuation of $3.17 billion. It is one of the few crypto assets that have tallied increase in its spot trading price.
Technical Indicators Point To Further Bearish Trend For LINK
As of this time, analysis points for LINK price leans towards the suggestion of another challenging run for the digital asset.
Its Relative Strength Index (RSI) settled below the 50-neutral zone, indicating that Chainlink is once again caught in a downward trend.
Moreover, its Chaikin Money Flow (CMF) fell below the 0.05 value, suggesting that there was significant capital outflow in LINK’s market performance.
Meanwhile, the crypto asset’s OBV indicated that there is a notable level of accumulation of the token during the period when it was trading at a narrow range since the month of May.
Over the last six months, Chainlink was able to establish $6.3 as a steady support level. However, if the broader crypto market fails to make a bounce back soon, the asset could be looking at a decline below the $5.9 marker.
Traders who are looking to take advantage of the current dip could test to buy between the $6.3 and $5.9 levels and try to make profit via the mid-range and high-range highs.
Chainlink Holders Sustain Heavy Losses
It turned out that Chainlink holders got worried when the asset experienced severe price correction as it abandoned the $9 marker.
As evidenced by the 365-Market Value to Realized Value (MVRV) that was also in an uncontrollable freefall, LINK token owners cashed out their holdings due to fear of tallying even bigger losses.
One good thing though for the crypto asset is its network growth metric which recorded a huge spike that surpassed the levels it set in September and October last year.
Still, investors must keep in mind that if Bitcoin continues to falter and thus fails to push its price to higher levels, there’s a big chance that LINK and other altcoins will keep on struggling.
LINK total market cap at $3.17 billion on the daily chart | Featured image from Watcher Guru, Chart: TradingView.com