For several days, the price of Chainlink (LINK) fluctuated between $10 and $11. This is a surprising move given recent notable developments in the project.
But since Chainlink bears are at the forefront of control, this is why it may be difficult for the altcoin to react positively in the short term.
Chain bears destroy bulls
According to IntoTheBlock, the Chainlink Bulls and Bears indicator favors the bears. In this context, bears are addresses that are selling at least 1% of the total trading volume. Bulls, on the other hand, are those who sell the same offer.
When bulls have more volume than bears, the price of an asset can rise. But as of this writing, Chainlink bears have sold 500,000 more tokens than the bulls have bought.
Given this position, it is unlikely that LINK’s price will rise, despite some analysts believing that the token should trade at least $15.
Additionally, In/Out of Money About Price (IOMAP) analysis shows that LINK may continue to face resistance despite several attempts to break above $12. IOMAP shows the number of addresses and volume that holds the token in unrealized gains or losses.
If the volume of losses exceeds the volume of profits, the next cluster will likely serve as a major point of resistance. Conversely, higher profit volume will create a significant support area.
As shown above, the main resistance is between $12.47 and $12.82. To date, nearly 18,000 addresses have purchased over 100 million LINK tokens. Therefore, if the price moves into this area, some addresses may break even, possibly causing the value to decline.
LINK Price Forecast: Lower Lows
On the daily chart, Chainlink faces notable resistance at $12.70. Additionally, the exponential moving average (EMA) suggests that the altcoin may fall below its current value.
As you can see below, the 20 EMA (blue) and 50 EMA (yellow) are in the same region. This trend suggests indecision among traders. But it looks like Chainlink bears are gaining the upper hand.
Given the current situation, the price of LINK may fall below $10. However, bulls can prevent this decline. To achieve this, Chainlink bears must take a backseat. If they do, the token could recover and reach $15.25.
