warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice.
- Chainlink posted double-digit losses in the past 24 hours while dropping below the Bollinger Bands baseline.
- The dominance of social LINK and the growth of the network is confirmed with a downward trend in the market.
After the reversal from the 200 EMA (green) on November 8, chain link [LINK] The sellers rushed to make a rally towards the lower Bollinger Bands (BB).
Read Chainlink Price Forecast [LINK] for 2023-24
While the price continued to cross just above the $6.6 support level, buyers are aiming to look for recovery opportunities. An ongoing sell-off may seek to resolve it before a bullish refutation in the upcoming sessions.
At press time, LINK is trading at $6.86, down 22.57% in the past 24 hours.
Could the immediate support level reignite the recovery in the near term?
Source: TradingView, LINK / USDT
Since falling towards multi-year lows near the $5.9 support area in mid-July, LINK buyers have been searching for new highs. The 200 EMA has limited buying efforts on the daily time frame since the beginning of this year.
Following a nearly two-month squeeze in the $6.6 – $8 range, the altcoin has finally entered a phase of high volatility. The recent uptrend saw an expected reversal from the 200 EMA and the upper band of the BB. Thus, LINK fell below the BB baseline to confirm the change in momentum against the sellers.
If the buyers maintain the psychological support at the $6.6 mark, the immediate rebound may help the bulls to push the LINK towards the $7.3-$7.9 range in the upcoming sessions. Price action may hover near the point of control (POC, in red) for a while before the directional change movement.
A possible close below $6.6 could open the gates to test the lower BB range followed by the $5.9 baseline.
Meanwhile, the Moving Average Convergence Divergence (MACD) has completed a bearish cross on the daily chart. But the lines were still hovering above the zero line. Such historical crossings above balance encouraged short-term dips.
Social dominance and network growth indicate this
Source: feeling
According to Santiment data, since mid-October, the coin has seen a sharp decline in its network growth and social dominance on a daily basis. However, at the end of October, the price movement recorded growth while varying according to these measures.
If bitcoin continues to decline in the coming sessions, LINK buyers may find it difficult to improve their social dominance in the coming days. In addition, LINK shared a 66% correlation for 30 days with Coin King. It will be necessary to closely monitor the movement of Bitcoin to make a profitable move.
However, the objectives will remain as discussed.