Chainlink price has slumped by double digits in the past few months despite having some solid fundamentals. LINK has dropped to $12.35, down sharply from the year-to-date high of $30. It may continue falling after forming a scary chart pattern on the weekly chart.
Chainlink Price Technical Analysis
The weekly timeframe chart shows that the LINK price has slumped to $12.6. It has moved below the 50-week and 100-week Exponential Moving Averages (EMA).
The token dropped below the Ultimate support of the Murrey Math Lines, which is a risky sign. Most importantly, there are signs that it has formed a head-and-shoulders pattern, which is a common bearish reversal sign.
The head is at $30, which aligns with the strong pivot reverse point of the Murrey Math Lines tool. It has completed the formation of the right shoulder and is now hovering at the neckline.
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Therefore, the most likely Chainlink price prediction is bearish if it moves below the ascending trendline. A drop below that level will point to more downside to the oversold level at $8.
LINK Has Strong Fundamentals
The only hope for Chainlink is that the network has strong fundamentals. One of these fundamentals is the fact that the supply of LINK tokens in exchanges has pulled back in the past few days.
Its supply dropped to 225.94 million, down from this month’s high of 228 million. Falling exchange balances is a good sign as it means that investors are moving their tokens to self-custody.
Chainlink whales have accumulated the token in the past few months. It now has 1.84 million, a 5.65% increase in the last 30 days, meaning that investors anticipate that it will bounce back.
LINK token may also benefit from the ongoing LINK ETF inflows, which have jumped to over $58.6 million. The Canary Chainlink ETF now has over $74 million in assets, which are equivalent to 0.85% of the market cap.
The Chainlink network has also continued to accumulate the token as part of its Strategic LINK Reserves. It has now accumulated 1.23 million LINK tokens worth over $15.3 million. This growth strategy will continue in the coming years as its on-chain and off-chain fees jump.
Most importantly, Chainlink’s oracle and CCIP is expected to keep growing in the coming years because of the Real-World Asset (RWA) tokenization. Most analysts expect the industry to continue growing in the coming years as companies like JPMorgan and Janus Henderson move to the industry.
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