Chainlink made headlines once again after distributing a $65,000 reward using Chainlink VRF in its smart contract with augmented reality platform OVR.
While Chainlink has reached wider audiences, the local cryptocurrency LINK has experienced regular drops due to the generally bearish market. At the time of writing, LINK is trading at $17.34, down 8% in the last 24 hours.
LINK rallied after recovery, but gains above $19.6 did not materialise. While investors are now taking back control of the market, LINK has formed a descending channel and is trading in the demand zone of $15 and $17.5. Although the Link is experiencing a breakout to the upside, LINK is trading in a sensitive area and could breakout.
If there is a close below $15, the price may turn bearish and drop as low as $12.7 from the January 11 low, which represents an additional 23% drop from the order of writing.
The Relative Strength Index refused a break above 50 and at the time of writing, movement has begun in the bearish zone. The MACD has formed a bearish crossover and its histogram has recorded rising bearish momentum. The increase in the downward pressure on the Directional Movement Index is also an important indicator. The DMI line moved well above +DMI as selling pressure increased. A rising ADX confirms a strengthening downtrend.
Looking forward, LINK will most likely trade in the demand zone of $15 and $17.5. In this case, investors should be cautious as a move in either direction is possible from this region. The lack of interest at LINK’s write price level is a key point, which could mean that the cryptocurrency is vulnerable to a prolonged sell-off.
With LINK falling towards the lower end of the demand zone in the next few sessions, the bulls may try to ease the bearish control. However, the price could push LINK down to $12.7 its January 11 low and an additional breakout could occur.