Chainlink (LINK) Forms Bearish Divergences as It Prepares to Plunge

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Chainlink (LINK) is one crypto-asset that has recovered massively from its September lows. As of this article’s writing, Chainlink (LINK) trades for $10.75, far above the $8 lows seen near the start of September.

The Chainlink’s long-term trend is still in a positive state, though, as long as it manages to hold the $8 lows.

Related Reading: Ethereum Transaction Fees Surge to All-Time Highs After Uniswap Launch

Chainlink Could Soon Move Lower as Bearish Divergences Form

Following the rest of the crypto-asset market over recent days, Chainlink (LINK) recently pushed towards $11 for the first time in many weeks. The

“Although, we are still above the red diagonal resistance which is quite significant, I am not expecting us to hold above here. The hourly and 4h bearish divergence kind of confirms this thought. Will be taking a short attempt around $10.88”

Image

Chart of LINK's price action over the past few weeks with analysis by crypto trader Steve (@Thetradingtramp on TWitter). Chart from TradingView.com
Related Reading: MicroStrategy’s Stock Continues to Soar After BTC Purchase

All Eyes on Bitcoin

While LINK may have its own case for moving lower, all eyes should be on Bitcoin, which may save Chainlink from a drop.

Analysts are unfortunately mixed on the leading cryptocurrency as it forms a $300 CME futures gap between Friday’s close around $11,100 and the current price of $11,400:

“Have placed some bids around the CME gap at 11,110. Hoping they fill for the weekly close or early Monday. High probability that we do so could be an easy trade (I hope),” one trader said in regards to the chart below.

Bitcoin

Image Courtesy of Pentoshi. Chart via TradingView.

Bitcoin could decline from here as 75% of CME Bitcoin futures gaps fill within the week they open.

Related Reading: MicroStrategy’s Stock Continues to Soar After BTC Purchase
Featured Image from Shutterstock
Price tags: linkusd, linkbtc
Charts from TradingView.com
Chainlink (LINK) Forms Bearish Divergences as It Prepares to Plunge

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