Quick take:
- Earlier today, ChainLink dipped below the crucial $8.80 support zone
- $8.80 was LINK’s last organic all-time high before LINK marines heeded the call to liquidate Zeus Capital
- LINK is also trading below the 50-day and 100-day moving averages
- The 200-day moving average might provide some relief around the $7 price area
The digital asset of ChainLink (LINK) continues on its massive correction from its mid-August all-time high value of $20. Earlier today, LINK’s value dropped below the crucial $8.80 support level to post a local low of $8.38. At the time of writing, ChainLink is trading at $8.82 and looks set to dip further in the days to follow.
Why $8.80 is Important for ChainLink (LINK)
The main reason $8.80 is a crucial level for ChainLink, is the fact that this was the last organic all-time high value before LINK marines heeded the call to liquidate Zeus Capital. ChainLink hit this value on the 15th of July and would only revisit it two weeks later on August 2nd. The latter date is also when LINK marines joined forces to begin their campaign of liquidating Zeus Capital.
LINK Losing $8.80 Opens the Doors to $7
Further taking a quick look at the daily LINK/USDT chart above, the following can be observed.
- Trade volume is in the red indicating additional selling pressure
- The daily MACD is showing weakness below the baseline with its histograms pyet to show any buying momentum
- MFI is in neutral territory at 57
- LINK’s current value of $8.82 is below the 50-day and 100-day moving averages that are now become resistance levels
- The 200-day moving average provides adequate support around the $7 price level
- The 50-day MA looks set to cross the 200-day MA to form a death cross by mid to late October
Conclusion
Summing it up, ChainLink is still very much in a downtrend. Earlier today, LINK dipped below the crucial $8.80 support zone that could ultimately open the doors to a $7 ChainLink. The latter price level provides sturdy support as this is also where the 200-day moving average lies.
As with all analyses of ChainLink, traders and investors are advised to use stop losses and low leverage when trading LINK on the various derivatives platforms.
