Chainlink (LINK) experiences significant decline in value and bearish market structure

One sentence summary – Chainlink (LINK) has experienced a significant decline in value, with indicators showing a lack of buyer activity and a bearish market structure, as well as a decrease in demand for derivative products and liquidation of long positions, suggesting a negative sentiment surrounding the cryptocurrency.

At a glance

  • Chainlink (LINK) experienced a significant drop in value, declining over 20% in August.
  • The Relative Strength Index (RSI) and Chaikin Money Flow indicators show a lack of buyer activity in LINK markets.
  • The current market structure for LINK is bearish, indicating sellers are dominating the market.
  • The market would turn bullish if the price crosses above $6.45.
  • Sellers are determined to break the $6 level.

The details

In August, Chainlink (LINK), a decentralized oracle network, experienced a significant drop in its value, with a decline of over 20%.

The Relative Strength Index (RSI) and Chaikin Money Flow indicators, which are used to measure the speed and change of price movements, show a lack of buyer activity in LINK markets.

The current market structure for LINK is bearish, indicating that sellers are dominating the market.

The market would only turn bullish, or favorable for buyers, if the price manages to cross above $6.45.

Sellers in the market are determined to break the $6 level.

There is a possibility of extending gains to the H12 bullish order block, which ranges from $5.51 to $5.72.

However, caution is advised for LINK bulls, or those who believe the price will rise, considering a long position.

This caution is due to the fact that a strong Bitcoin recovery is not expected in the near future.

LINK’s Open Interest rates on derivatives have decreased from over $300 million in July to around $133 million in August.

This decrease in Open Interest rates indicates a decline in demand for derivative products related to LINK.

The decrease in Open Interest rates suggests a decrease in market interest and potential bearish sentiment, or the belief that the price will fall.

It is also worth noting that long positions, or investments made with the expectation that the asset will increase in value, have been liquidated across all timeframes.

This liquidation of long positions further supports the bearish bias in the short and long term for Chainlink.

Considering all these facts, it is clear that LINK has faced a significant decline in value.

Indicators are pointing towards a lack of buyer activity and a bearish market structure.

The decline in Open Interest rates and liquidation of long positions further reinforce the bearish sentiment surrounding Chainlink.

As always, it is important for investors and traders to carefully analyze these factors before making any investment decisions related to Chainlink (LINK).

Article X-ray

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A broken chainlink symbolizing a decline in value and a bearish market structure.

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ambcrypto.com
– In August, Chainlink (LINK) experienced a decline of over 20% in its value.
The Relative Strength Index and Chaikin Money Flow indicators have shown a lack of buyer activity in LINK markets.
The market structure for LINK is currently bearish and would only turn bullish if the price crosses above $6.45.
– Sellers are determined to break the $6 level and could potentially extend gains to the H12 bullish order block of $5.51 – $5.72.
– Caution is advised for LINK bulls considering a long position, as a strong Bitcoin recovery is not expected at the moment.
– LINK’s Open Interest rates on derivatives have decreased from over $300 million in July to around $133 million in August, indicating a decline in demand.
– Long positions have been liquidated across all timeframes, further supporting a bearish bias in the short and long term.

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