Chainlink Price Under Pressure, LINK/USD Bulls Up 6X Year-to-date

The Chainlink price is under pressure as bears flow back, clipping bulls’ wings.

As of Mar 10, the Chainlink price remains in consolidation, losing three percent on the last day but up six percent week-to-date.

From a top-down approach, buyers are in contention, adding an impressive 6X year-to-date. Nevertheless, flat-lining ETH prices have affected DeFi, which in turn is hammering prices. Considering how vital Chainlink is, its prices are a casualty.

Trading at around $30 on Mar 10, the path of least resistance is northwards in the medium term but bearish in the immediate term. Participation levels on the last day are lower, down 24 percent. During this time, $1.1 billion of LINK tokens have changed hands.

Chainlink Price Overview

The uptrend is valid as long as prices continue to print series of higher highs, breaking above the ascending triangle visible in the daily chart.

For risk-averse traders, a close above $37—or February 2021 highs, complete with relatively high trading volumes exceeding those of Feb 23 down candlestick, will be enough to propel LINK/USD prices to $44—a new 2021 high.

On the lower end, the confirmation Feb 22 and 23 bear candlesticks could force LINK prices back to $20 or August 2020 highs in a retest. Technically, this can be a possibility.

Notice that bulls have been reversing losses of late February, albeit with lower trading volumes over the last few days. This indicates bears from volume analysis.

Chainlink Market Movers

Chainlink is a blockchain-agnostic oracle supplying external data to smart contracts. It is an indispensable cog in DeFi, used by the most secure and leading protocols. As of writing on Mar 10, over 200 different projects and blockchains rely on Chainlink for data.

Already, Chainlink is live on Arbitrum—an Optimistic Rollups built to scale Ethereum:

Chainlink is live on @Arbitrum, starting with Chainlink Price Feeds for DeFi developers. As Arbitrum’s recommended oracle solution, #Chainlink enables #DeFi apps like @Bancor & @MonteCarloDEX to access off-chain resources in a scalable layer 2 environment. https://t.co/BGsB6pCkYP

— Chainlink (@chainlink) March 8, 2021

For this, traders expect LINK prices to rally to four digits:

When I say @Chainlink $1000 EOY , you say __________.$LINK

— Albert Nazarov (@linkchainlink) March 9, 2021

The two digital art pieces acquired by Taco Bell were Chainlink-themed:

The first pieces of digital art acquired by @tacobell were two #Chainlink themed NFTs

Can't even make this up, the timelines are converging, IYKYKhttps://t.co/vlmykVsRWx pic.twitter.com/ZRMzNMTYjO

— ChainLinkGod.eth (@ChainLinkGod) March 8, 2021

Meanwhile, the project is also contributing towards helping build the Ethereum and blockchain ecosystems.

We're excited to announce that Chainlink is contributing to @gitcoin's Round 9 as a matching partner. Chainlink is providing financial support to the infrastructure category, helping fund & maintain open-source tech widely relied on by Ethereum's ecosystem.

— Chainlink (@chainlink) March 5, 2021

Chainlink Price Prediction

The Chainlink price is chugging higher but clipped on the last two days.

From an Effort-versus-Results perspective, sellers appear to be in control but may be short-lived if prices edge higher. Notice that more than two weeks after Feb 22-23 bear bars printed, bulls are yet to rewind losses. Besides, accompanying trading volumes are relatively lower than Feb 23 bear candlestick. Despite long lower wicks suggesting demand in lower time-frames, LINK prices may tumble below the minor support trend line towards $20—August 2020 highs.

Any break below the support trend line might trigger a sell-off in line with late February losses, an opportunity for aggressive sellers aiming for $20.

Conversely, if buyers re-assert themselves and thrust LINK/USD above the minor resistance level at $34, LINK bulls could rally to Feb 2021 highs of $37 in a fitting trend continuation pattern.

Chart courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.