Chainlink’s price may decline as investor optimism fades. The emerging downtrend could be due to minimal network activity compared to its valuation.
What’s Happening with Chainlink?
This process prevented the altcoin from losing significantly and also pushed its price up in mid-August. However, this strong optimism is now starting to wane. Despite the recent price increase, the weighted sentiment for LINK is consistently dropping. Currently, it remains above the zero line, indicating that there is still positive sentiment among holders.
LINK Chart Analysis
Chainlink’s price at $12.00 aims to turn the $12.35 resistance into a support level. This level has been tested multiple times as a turning point, and recovery above this level is crucial for LINK. However, mixed signals from the network and LINK holders suggest a different path. Chainlink’s price may be recording a decline towards the local support base of $10.79. Although a drop below this level seems unlikely, unfortunate conditions could send the altcoin to $10.00. This could erase the 22% recovery recorded in mid-August. However, if the altcoin maintains its upward momentum and bounces off the $10.79 support, it could surpass $12.35. This could lead to a rise above $13.00, invalidating the bearish thesis for Chainlink’s price.
Conclusion
In conclusion, Chainlink prices face pressure due to waning investor optimism. Monitoring network activity and key indicators in the near future is crucial to understand potential scenarios.
As investor optimism decreases, Chainlink prices face pressure. It is important to monitor network activity and key indicators to understand potential future scenarios.
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