Chainlink’s Failing Bullish Reversal Warns 30% Decline In May

The post Chainlink’s Failing Bullish Reversal Warns 30% Decline In May appeared first on Coinpedia Fintech News

Starting the month on a bearish note, the crypto world crashed when Changpeng Zhao received a four-month jail sentence. Amidst the crashing altcoins, Chainlink amplifies the downtrend to end April with a 31% decline in market cap. 

With the altcoins sliding down the bearish slope, will Chainlink find an anchor point to halt the downfall? Or is the bearish trend crashing LINK price under $10? For a long-term perspective, check out our LINK price prediction. 

Chainlink Price Performance

With an evident bearish reversal from the 38.20% Fibonacci level at $23, Chainlink fails to find a bullish anchor. The downfall cracks under the $15 psychological mark and the 23.60% Fibonacci level. Thus, the overall sentiment surrounding the LINK token is increasingly bearish.

Tradingview

In the 1W chart, the LINK price crashes under the 50W EMA and trades at $12.76 with an intraday drop of 2.88%, following the 6.77% last night. This downfall increases the likelihood of a death cross in the 1D chart and even the 1W chart. 

Currently, Chainlink is approaching the $12.24 support level, and the sideline traders anticipate a bullish turnaround. Further, the daily RSI line and the MACD indicator show a bullish divergence, increasing the possibility of an uptrend. 

Technical indicators:

MACD: The bearish crossover in the MACD and signal lines are gaining momentum as they trend in the negative territory. Further, the bearish histograms are on the rise, bolstering the possibility of a downtrend.

Will The LINK Price Survive Above $10?

As Chainlink’s ongoing downtrend siphons additional momentum from the broader market sell-off, the chances of a bullish reversal are slim. However, upcoming support is $12.24, and the 200W EMA might provide a cushion for a bounce back. 

On the downside, if the supply continues to grow, a downside potential is on the cards to hit the $8.87 support zone.