Chainlink (LINK) started the week on a bullish note as DeFi tokens stole the show amidst LIBRA-driven pessimism in the meme token sector.
The altcoin hovers at $18 after significant volatility in the past 24 hours.
Notably, LINK failed to overcome the key resistance at $20 again.
That signals weakness, positioning Chainlink for bearish actions amidst the prevailing macro headwinds.
Failure to sustain above the $17 local bottom (formed on Feb 10) might trigger dips towards the $14 region
That would translate to an over 20% decline from LINK’s current prices.
Can interest from smart traders rescue the alt from the projected dip? Let’s find out.
LINK momentum weakens amid broad market volatility
The alt has thrived as the RWA tokenization sector expands with magnified institutional interest.
Chainlink remains crucial for the cryptocurrency sector as an Oracle price feed provider.
It recently revealed nearly 30 integrations by other blockchain platforms.
However, its price has struggled to reflect the momentum with subdued movements.
Dwindled broad market sentiments have hindered LINK’s breakouts past $20.
Chainlink price action: what’s next
LINK trades at $18 after hitting the crucial support of $17.81 in the past 24 hours.
Source: Coinmarketcap
The deteriorated daily trading volume amid broad market dips shows weakness in LINK’s performance.
The Moving Average Convergence Divergence confirms the overwhelming bearish pressure with a visible bearish cross with the signal line on the daily chart.
A break beneath $17 might attract more selling activity, extending the downside to $16, which coincides with the 200-day Simple Moving Average.
Such a performance could see LINK visiting the $14.75 mark soon, translating to a nearly 22% loss from current values.
However, the daily chart flashes hope as LINK maintains its price beyond the 200-day SMA (at $16.23).
The moving average has historically offered a rebound launchpad.
Amplified momentum above $16 could trigger significant reversals towards $20.
However, bulls should prepare for the robust resistance at $21.31 (50-day Simple Moving Average), which can mean extended consolidations.
Whales to the rescue?
While LINK stares at declines after failing to overcome $20, whale insights indicate optimism.
Dip-pocketed investors show interest in Chainlink at its current levels.
Analyst Ali Charts revealed that whales purchased more than 1.10 million tokens, indicating trust in the alt’s performance.
Whales bought over 1.10 million #Chainlink $LINK in the last 24 hours!
Go to @SimpleFXcom, claim the $5,000 bonus via my link sfx.unilink.io/ali, and get some before the rebound.
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Also, iCrypto.ai data shows Smart DEX traders accumulating Chainlink.
Smart DEX traders are accounts with incredible trading performance and significant profits within decentralized exchanges due to their strategic investments.
Their heightened interest in LINK indicates confidence in the altcoin’s future actions.
Interest by large-scale investors could be crucial to preventing highlighted losses in the upcoming sessions.
Enthusiasts should follow broad market trends to determine Chainlink’s potential near-term direction.
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