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Will this new development push the Chainlink price to $7?

That chainlink The price has not reflected any positive changes despite a major development in the altcoin ecosystem. In the last 24 hours, LINK is down over 4%. Even in the weekly window, the altcoin lost over 6% of its value.

LINK had posted sizeable gains in the month of November. However, the bulls failed to sustain the price action as the coin moved south in early December.

Chainlink’s price has fallen below the $7 mark. For the coin to become bullish, it needs to break through the above price zone. Investor interest has yet to be reflected on the daily chart. Chainlink is a Blockchain-Oracle network that launched its staking feature. This is intended to help increase the overall economic security of the platform’s services.

This development is said to be an integral part of its “Chainlink Economics 2.0” effort, which aims to promote greater security and ensure sustainable growth within the ecosystem. The technical outlook shows a fall in accumulation and at the current price, LINK is being hedged at a discount of 87% to its 2021 lock all-time high traded.

Chainlink Price Analysis: One-Day Chart

Will this new development push the Chainlink price to $7?, Crypto Trading NewsChainlink was priced at $6.86 on the one-day chart | Source: LINKUSD on TradingView

LINK was trading at $6.86 at the time of writing this article. Despite trading close to the crucial price resistance level, the altcoin had to clear a key price cap to claim $7. The immediate Resistance was $6.90. After breaking $7, Chainlink might face a major barrier at $7.36, which indicates a significant retracement.

If LINK falls below the current price level, it could land at $6.22 and then $5.90. The LINK quantity traded in the last session saw a decline, meaning the sellers were still in charge and price sentiment was bearish.

Technical Analysis

Will this new development push the Chainlink price to $7?, Crypto Trading NewsChainlink decline in buying pressure on the one-day chart | Source: LINKUSD on TradingView

LINK had managed to generate more buying pressure this month, but with constant volatility and price swings, the bulls have finally eased. The Relative Strength index fell below the half line, indicating falling buyer interest.

Reflecting the same sentiment, the Chainlink price peeked below the 20-Simple Moving Average line, signifying that sellers had started driving price momentum in the market. Buyers will be back for a considerable period if Chainlink prices surge above $7.36.

Will this new development push the Chainlink price to $7?, Crypto Trading NewsChainlink saw a decline in the buy signal on the one-day chart | Source: LINKUSD on TradingView

Regarding the falling purchasing power, other technical indicators also showed similar values. The buy-signal on the daily chart started falling. The Moving Average Convergence Divergence, which measures price momentum and trend reversals, noted that the green histograms were shorter.

This is not good news for buyers, and buyers must refrain from cumulating at this point. Similarly, the Parabolic SAR, which represents the price direction, formed a dotted line above the candlestick, indicating downward movement in the market.

Featured Image by LeewayHertz, Chart: TradingView.com

Source: Crypto News Deutsch

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