Link/USD has been dumping for a while now, crashing more than 60% from its all-time highs of $19.858 in less than two months, and it is currently looking like that sell-off is far from over.
The pair is currently forming a bearish flag pattern on the daily timeframe. This indicates that sellers are still in full control of the Chainlink market, and there is a high probability that we might see this massive sell-off in the altcoin resume in the coming days to as low as the $7 price region.
In the coming days leading up to the U.S presidential elections, we can expect to see a more volatile crypto market as traders react to news and fundamentals surrounding the elections. There is also a high probability that we might likely see a price breakout from the ascending channel the Link/USD pair is currently trading in.
Important Levels To Watch Out For
The important levels to watch out for in the coming days are the top and base channel of the bull flag pattern currently forming. The pattern is not completed until we see a price breakout.
If the Chainlink price breaks out to the upside, then the pattern becomes untradable. However, if we see a breakout to the downside, this confirms the resumption of the bearish trend.
The first target to aim for is the previous lows of $7.5. In this price region, Chainlink might find support and rebound. However, if that support level fails, then there is a high probability we might see the sell-off continue to as low as the $6 or even the $4 price region in the coming days.
This bearish outlook on Link/USD is also reflected in other De-fi coins across the board as Etherum (a leading indicator for the De-fi market) continues to sell-off hard, dragging the whole De-fi market down with.
Bitcoin on the other hand continues to perform extremely well in these market conditions, as the price remains very bullish and the fundamentals remain very positive.
However, that might all change in the coming days as the Bitcoin price continues to struggle to break out of the $13,877 resistance region. Whatever happens in the coming days will not only affect Bitcoin but the whole of the crypto market too.
For a list of the top best Altcoins to put on your watch list and trade during this coming bull run, check out my Top 25 Cryptocurrencies by Market Capitalization
To gain more information on how to partake in this coming Bitcoin Bull run and trade this cryptocurrency, you can read my buy bitcoin and trade instantly Guide. You can also check my top list of the largest bitcoin exchanges to trade with.