The crypto market continues without giving much good news during the current week, if we talk about price; Chainlink for example has not been performing very well, and it seems that it will be testing the $ 7 again. At the time of writing LINK is trading at $ 8.63 per unit.
Why do I say this week is crucial week for Chainlink?
Although in the long term we still see a solid uptrend, identified in the monthly LINK vs. USDT, the fall that we have been witnessing has not managed to reach a bottom yet, so with each passing day the bulls will continue to lose strength.
The current week has been developing negative for Chainlink, which led the price to lose support at $ 9.37, putting the medium-term uptrend that it brings at risk.
At the moment the odds are in favor of a search of at least the area of demand around $ 7. For the bulls it is a good sign that such support is not lost.
It seems that the best that can happen before resuming the long-term trend is a strong cumulative period, such as the one that occurred between June 2019 and July of the current year.
However, there is still time for the bulls to surprise us, and manage to invalidate the forecast bearish / lateral scenario. Either way, it’s always best to join in on the bigger trends, and find out if the fundamentals driving that direction are interesting enough to build on.
Short term trend
It is in the daily timeframe that we see very clearly the solid downtrend that has developed since the beginning of August.
The fast moving averages crossed down on August 25, and since then they have been working as dynamic resistances while the short-term trend develops.
We now have a clear bearish slope, with an immediate horizontal barrier located at $ 11.
The 200-day SMA is still bullish, following the strong gains that LINK has made during the current half. This moving average may act as a strong support, confluence with the demand zone surrounding $ 7.
However negative it may be that Chainlink closes lower this week, it can be halted if the support at $ 7 is not crossed. If this happens, it will probably lead to a significant cumulative period.
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