#Chainlink sunk 82% in 2022, LINK is Fragile at $5.3 Support
Past Performance of Chainlink
Chainlink is backed by solid fundamentals, considering the significance of the protocol in DeFi and NFTs. However, looking at price charts, LINK has not been spared. The token dropped 82 percent from 2021 peaks and remains within a bear breakout formation at spot rates. Unless there are sharp expansions above $8, sellers are in control in the medium to long term.
#Chainlink Technical Analysis
LINK is higher, gaining four percent from December 2022 lows. Even so, the path of least resistance is southwards as long as the token is below $6.10, a critical reaction level. Aggressive traders can look at trading volumes to unload on every high below $6.10. This forecast is valid from an effort-versus-result perspective. All the same, this preview will be more precise if there are losses below $5.3. In that case, especially if the sell-off in continuation of the December drop is with high trading volumes, LINK may slip to print a new multi-month low below June 2022 lows.
What to Expect from #LINK?
LINK is under significant selling pressure, clear in the daily chart. The drawdown could continue if LINK fails to bounce from spot rates, edging past $6.10 in the near term. Any other development forcing the token lower may cause even more pain for holders, an opportunity for short traders.
Resistance level to watch out for: $6.10
Support level to watch out for: $5.3
Disclaimer: Opinions expressed are not investment advice. Do your research.
Chainlink is backed by solid fundamentals, considering the significance of the protocol in DeFi and NFTs. However, looking at price charts, LINK has not been spared. The token dropped 82 percent from 2021 peaks and remains within a bear breakout formation at spot rates. Unless there are sharp expansions above $8, sellers are in control in the medium to long term.
#Chainlink Technical Analysis
LINK is higher, gaining four percent from December 2022 lows. Even so, the path of least resistance is southwards as long as the token is below $6.10, a critical reaction level. Aggressive traders can look at trading volumes to unload on every high below $6.10. This forecast is valid from an effort-versus-result perspective. All the same, this preview will be more precise if there are losses below $5.3. In that case, especially if the sell-off in continuation of the December drop is with high trading volumes, LINK may slip to print a new multi-month low below June 2022 lows.
What to Expect from #LINK?
LINK is under significant selling pressure, clear in the daily chart. The drawdown could continue if LINK fails to bounce from spot rates, edging past $6.10 in the near term. Any other development forcing the token lower may cause even more pain for holders, an opportunity for short traders.
Resistance level to watch out for: $6.10
Support level to watch out for: $5.3
Disclaimer: Opinions expressed are not investment advice. Do your research.
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