Can Chainlink [LINK] Explode in the Next 30 Days?
![Can Chainlink [LINK] Explode in the Next 30 Days?](https://media.askfx.com/assets/48025-can-chainlink-link-explode-in-the-next-30-days-1024x585.jpg)
![Can Chainlink [LINK] break out in the next thirty days?](https://cdn.askfx.com/assets/localimages/link-jai-1200x686.jpg)
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- LINK fell, with repeated “Death Cross” and multiple double bottom patterns.
- At press time, both the altcoin’s RSI (Relative Strength Index) and Ichimoku Cloud confirmed that bears dominated.
Chainlink has been a hot topic over the past two weeks. [LINK] The company’s short-term and long-term outlook was called into question by the 25% drop.
AskFX was concerned about this sharp drop and started investigating LINK’s possible breakout potential in the next thirty days.
The probability of a rally taking place is low
The double bottom pattern is a clear bullish indicator that we can see on the LINK chart.
As can be seen in the chart below, the LINK price has experienced multiple double bottoms. This is evidenced by three cases of a bullish reversal.
TradingView
Price frequently staying near or below the lower Bollinger Band indicates strong downward pressure. However, this could also indicate oversold conditions that could entice buyers to return to the market.
The 50-day MA crossed below the 200-day MA. This is the infamous death cross signal that usually signals a bearish market outlook and possible further declines.
TradingView
RSI readings are mostly below 60 and often hover near or below the midline (50), indicating that bears are in control.
The lack of sustained moves above 60 confirms that there is no bullish momentum in the short term.
LINK has stuck with the bears
Price easily tested and broke the previous support levels around $13.50 but failed to hold due to persistent bearish pressure.
TradingView
Price action is always below the Ichimoku cloud. This indicates a strong downtrend.
MACD line is below the orange signal line and close to zero. This confirms that LINK is not showing any immediate signs of recovery.
At LINK’s current price, only 37% of holders are in the black. The majority (54%) are out of money. Investors are under selling pressure as they try to minimize their losses.
Source: IntoTheBlock
AskFX’s analysis of IntoTheBlock found that inflows were less than outflows (35.48 vs 36.54 million).
Here is LINK’s market cap in BTC.
So, more LINK was moved off exchanges and possibly held in private wallets. This is a sign of accumulation, and where there is accumulation, there will be bulls.
Although LINK’s price is unlikely to increase in the next thirty days, its long-term growth potential remains strong.
