Chainlink May Fall To The Bottom: Analysts Predict A Decline To New Lows
2020 began for the Chainlink cryptocurrency quite successfully. The growth rate was recorded at the beginning of the year, due to which the market capitalization of the cryptocurrency rose. But the situation changed when bearish sentiment swept the cryptocurrency market. The negative effects have already touched LINK, and we can observe the price charts presented by crypto analysts last week.
Crypto experts note that Chainlink can thus replicate the Ethereum behavior model. In March, one of the most stable and top cryptocurrencies fell below $300, which came as a surprise to many traders.
Thus, if forecasts come true, Chainlink expects a sharp drop in value. As a result, shortly we can witness the achievement of a new price minimum for cryptocurrency.
Chainlink shows signs of a bearish trend
Chainlink continues to resist the bearish trend. Now LINK’s price is $3.37. This indicator is 0.26% higher than yesterday. Thus, Chainlink is trying to bounce off the lower resistance level. Now the bulls are trying to play on the growth of cryptocurrency resistance.
In this situation, the relative stability of Bitcoin can help other cryptocurrencies “stay afloat”, including Chainlink. Today, the flagship cryptocurrency is trading in the range of $7,000. If Bitcoin keeps market capitalization at the current level, it is likely that other cryptocurrencies will be equal to the crypto flagship.
Analysts note that now certain trends are forming that will be characteristic of the cryptocurrency market in the future. Many of them predict that shortly bearish sentiment will prevail on the market, which will especially affect the market performance of small cryptocurrencies. One lead trader noted that Chainlink’s price could drop to $2.80.
LINK can repeat Ethereum path
Some crypto traders draw a parallel between the market behavior of Ethereum and LINK. They note that Ethereum, after reaching the top, collapsed to a historic low of $280. The same thing could happen with Chainlink.
As an argument, one of the traders indicates a change in LINK technical indicators, based on fluctuations in the cryptocurrency market. We could observe the same thing with Ethereum a month ago.
Can these forecasts come true? We can find out about this only after some time has passed. If crypto traders turn out to be right in their observations, Chainlink expects a phase of decline and struggle to restore their positions.