- Chainlink price has formed a head and shoulders pattern on the daily chart.
- In price action analysis, this pattern is usually a bearish signal.
The Chainlink price retreated slightly on Monday morning as the cryptocurrency industry erased some of its weekend gains. LINK is trading at $16.75, which is about 42% below the highest level in January and about 70% below the highest point in 2021.
Why is LINK falling?
Chainlink is one of the biggest blockchain projects in the world. LINK, its native token, has a total market value of about $7.8 billion, making it the 20th biggest cryptocurrency in the world.
Chainlink is a relatively unique project because it does not have any major competitors in what it does. It is different from layer 1 and layer 2 projects like Ethereum, Solana, and Polygon.
This difference comes from the fact that Chainlink does not offer a platform for people to build decentralized apps.
Instead, it offers a smart oracle system that helps app developers integrate off-chain data to blockchain platforms.
For example, because of Chainlink’s partnership with the Weather Channel, it is possible to integrate weather data to blockchain projects. Similarly, it is possible to use its APIs to integrate other types of data like on the stock market and traffic.
Therefore, Chainlink is a platform that does well when other blockchain platforms like Ethereum, Binance, and Solana do well.
The Chainlink price recently reacted to several announcements from Chainlink Labs. For example, in December, the company announced that Eric Schmidt will become a board member. That was an important announcement since Schmidt is one of the most experienced professionals in the world. He was Google’s CEO and chairman.
Last week, Chainlink announced that it had hired Christian Catalini as its technical advisor. Catalini was the co-creator of Diem, the blockchain platform owned by Meta Platforms. This month, Facebook announced that it would sell these assets.
Chainlink price prediction
The daily chart shows that the LINK price has been under intense pressure in the past few months. A few days ago, the coin declined to a low of $13.67, which was the lowest level on July 20th. Recently, it attempted to rebound and found a strong resistance at about $18.
The Chainlink price is below the 25-day and 50-day moving averages while the MACD has moved below the neutral level. A closer look shows that it has formed a head and shoulders pattern.
Therefore, the coin’s price will likely continue falling as bears target the next key support level at $10.
