- The cryptocurrency market has entered a consolidated phase, with top cryptocurrencies displaying neutral price action since the week started.
- Chainlink (LINK) has experienced a strong bearish trend reversal after trading under a bullish sentiment for the past two weeks.
- The Simple Moving Average (SMA) and the Moving Average Convergence Divergence (MACD) indicate a negative outlook for LINK.
As the cryptocurrency market grapples with a period of consolidation, leading cryptocurrencies have been exhibiting neutral price action since the beginning of the week. Ethereum (ETH), the altcoin leader, continues to trade close to its critical support level of $2,800, signaling a cool-off in its price momentum.
In contrast, Chainlink (LINK) has experienced a notable shift in sentiment, with the token recording a strong bearish reversal after enjoying a bullish trend for the past two weeks. As volatility intensifies, the question arises: Will the LINK price manage to hit $20 over the upcoming weekend?
Chainlink Price Encounters Strong Bearish Reversal
Amid the prevailing bullish sentiment in the crypto market during the second week, Chainlink formed a rising channel pattern on the 4-hour time frame. However, the altcoin has recently witnessed a bearish trend reversal, resulting in a breakdown from the aforementioned pattern.
At press time, the price of the Chainlink (LINK) token stands at $17.910, with a circulating supply of 587,099,970 LINK and a market capitalization of $10.47 billion. These figures have propelled LINK to secure the 13th spot on the global cryptocurrency market list by market cap.
The Simple Moving Average (SMA) on the 4-hour chart displays a bearish curve, hinting at the possibility of a bearish crossover in the near future. This development suggests a negative outlook for the altcoin within the crypto market.
Potential Scenarios for Chainlink Price Movement
If the market manages to regain momentum, the Chainlink token may retest its resistance level of $18.250. Should the bulls successfully hold the price at this level, it could set the stage for LINK to target its upper resistance of $19.220 in the coming period.
Conversely, if the bears maintain their dominance over the market, the LINK token may test its support level of $17.200. In the event that bulls fail to defend this level, the price could plunge further, potentially targeting the crucial support at $15.925 in the upcoming weeks.
