Even though most altcoins have been seeing a price correction taking place, Chainlink has felt the brunt of this correction. The value of LINK has been slipping and has been seen increased pressure from the sellers. After peaking at $12.97 on 27 December, the altcoin has fallen to $11.43, at the time of writing.
LINK four-hour chart
Source: LINKUSD on TradingView
The 4-hour chart of LINK also highlighted this descending price. Even though the price has been moving lower, the bearishness in the market might be taking a time-out as the interest flows into the market. This could help the price of the digital asset slightly, and if not, witness a price swing.
Reasoning
This change in the direction of the price could be visible as the Relative Strength Index has hit equilibrium. This could be a sign of a price correction after the sudden surge in price on 27 December. The price has now stabilized and could witness an upwards trend.
This was also affirmed by the Chaikin Money Flow which was under the zero-level, highlighting that the money was flowing out of the market. However, the signal has been pointing upwards, which meant that the buyer may take this opportunity to buy the digital asset as it has proven to be a good investment especially during a consolidating market.
Position
Entry: $11.25
Stop-Loss: $10.78
Take-Profit: $12.05
Risk-to-Reward: 1.72
Conclusion
The LINK market may not be highly correlated to the Bitcoin market, however, the crypto has been a good alternate investment. Even though the coin was noting a downtrend, this is a chance for traders to buy more of it and long the digital asset. The coin may witness a boost in its price as the market moves forward and traders might be able to realize a profit at $11.94.
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