The Chainlink price dropped by 9 per cent in yesterday’s trading session. Today, the bearish trend looks to be continuing, with the early hours of the session showing a drop of a percentage point.
The drop in price comes amidst a series of Chainlink integrations geared towards making Web3 development easier. Last week, through its Twitter account, the platform announced 16 integrations of 4 chainlink services across 7 different chains. The chains included Avalanche, BNBChain, Ethereum, and Ethereum Rikeyby testnet.
Chainlink market activity for the past week also showed a lot of sideways trading, with most trading sessions closing with a gain. However, the trading sessions that were bullish involved more volatility, and therefore, prices failed to move significantly higher,
However, since yesterday, the downward trend has become aggressive, with prices dropping by 10 per cent. There is also a high likelihood that the drop may be long-term due to price action showing prices recently hit the upper trend line of the ascending channel, which may have triggered the current drop.
Having considered the price action of the past 7 days and yesterday’s strong bearish trend, my Chainlink price prediction expects the prices to continue falling. Looking at the chart below, there is a high likelihood that we will see prices touch the lower trendline of the ascending channel.
If the current drop has enough momentum, then it is likely that we will see prices hit the $5.64 support level. There is also a high likelihood of prices trading below the price level, which may cause Chainlink prices to trade below the $5 price level.
However, should the prices retreat and close above yesterday’s opening price of $7, then my trade analysis will be invalidated. The price action will also have reversed the strong bearish move price action. This will mean a higher likelihood that the price will rise further.
This post was last modified on Jul 27, 2022, 15:44 BST 15:44