Bitcoin is backtracking and dragging the entire crypto market down, and some participants are being hit pretty hard. Chainlink (LINK) is one of the markets that has fallen the most in the last few days, dropping up to -35%. We will now carry out a technical analysis of this crypt currency, in order to know its possible future in the short term.
Chainlink trend in the medium term
In the weekly chart of the LINK vs USDT price, we can see how the drop we are witnessing is just developing a 1st weekly downward slope, without much relevance even if we compare it to the big bullish rally seen during the last months.
In the medium term the trend is solidly upwards, product of higher and lower highs and lows. The 8 week EMA and 18 week SMA moving averages are crossed upwards.
The weekly bearish candlestick that is about to close, even though it has not yet caused too much havoc, could be the beginning of a medium term upward trend reversal, more than necessary at the point where the price is located.
Named moving averages may work as dynamic supports, if the price seeks to fall.
The medium term uptrend will remain intact as long as the $7.5 support is not broken.
Chainlink: The next Bitcoin?
Short-term LINK trend
In the daily chart we begin to see in more detail the significant drop that Bitcoin Circuit is making.
With this bearish intention, the bears were able to break an immediate support, located at $16.95, which starts a bearish transition.
But as long as the $12.99 support is not broken, the short term reversal cannot be confirmed.
The 8-day EMA and 18-day SMA moving averages continue to cross the upside. The 200 day SMA is also bullish at the moment, quite far from the price, referring to the strong upward momentum from Chainlink during the last months.