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CoinGape 2024-12-31 11:45:06

Chainlink Price Rare Pattern Points To A 35% Crash

Chainlink price has nosedived this month, and a rare chart pattern points to more downside as we enter into 2025. Despite its strong fundamentals, LINK has crashed by 35% from its December highs, mirroring the performance of Bitcoin and other altcoins. Chainlink Price Analysis: H&S Points To More Downside The 4H chart shows that the LINK price rallied and peaked at $31 in December as Bitcoin and other altcoins rallied. It has formed a head-and-shoulders chart pattern and is now hovering at its neckline. An H&S pattern is a popular reversal sign that comprises a head, two shoulders, and a neckline. In this case, the head was at $31, while the two shoulders were around the 23.6% Fibonacci Retracement level at $26.10. This pattern’s neckline is at the 50% retracement point and the weak, stop & reverse of the Murrey Math Lines. Chainlink price also formed a death cross on December 22 as the 200-period and 50-period Weighted Moving Averages (WMA) flipped each other. Also, the Percentage Price Oscillator (PPO), which is a modified type of the MACD indicator, has moved below the zero line and is pointing downwards. Therefore, these patterns point to a big drop in the next few days. The distance between the head and the neck is about 35%, while a similar distance from the neckline points to a LINK price crash to $13.25. Chainlink Price Chart Conversely, a move above the major S&R pivot point at $25, which is along the right shoulder, will invalidate the LINK price forecast . Such a move will validate the slow formation of a falling wedge pattern between December 24. A wedge is a popular bullish reversal pattern. LINK Falls As Total Value Secured Slips Chainlink price retreat has coincided with the ongoing retreat of other DeFi tokens like AAVE, Uniswap, and Compound. At the same time, ecosystem data shows that the total value secured in the network has tracked downward in the past few days. This figure peaked at $41 billion earlier this month and then retreated to $35 billion. Most networks in its ecosystem, like Spark, Eigenpie, AAVE V2, and GMX have shed assets. Chainlink Open Interest More data by IntoTheBlock shows that the Chainlink open interest in the futures market has fallen in the past two weeks. The interest stood at $1.48 billion on December 30th from this month’s high of $2.8 billion. That is a sign that Chainlink is having soft demand in the futures market. The post Chainlink Price Rare Pattern Points To A 35% Crash appeared first on CoinGape .

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