- The last day saw LINK recording a double-digit drop as it dropped beneath the Bollinger Bands’ basis line.
- Chainlink’s network growth and social dominance matched the broad market bearishness.
Chainlink sellers triggered a drop toward the Bollinger Bands’ lower band within no time. That came after the alternative token reversed from the 200 Exponential Moving Average on November 8. Meanwhile, buyers would hunt for bounce-back opportunities as the price hovered beyond the support floor at $6.6.
However, the current selling spree should cool before bullish actions in the upcoming sessions. LINK traded near $6.86 during this publication, dropping approximately 22.57% within the previous day. The massive slump emerged as the broad cryptocurrency market endured a bloodbath.
Can the Nearest Support Trigger Short-Term Revival?
Chainlink buyers have strived to secure new highs since the alternative coin plunged toward multi-year lows at around the support of $5.9 in mid-July. Meanwhile, the 200 Exponential Moving Average has restricted buying efforts in the 24-hour chart since early this year.
The nearly 2-month compression at the $6.6 – $8 value area saw the alt eventually dipping into a high volatility region. The latest bullish run witnessed anticipated reversals from the 200-Exponential Moving Average and the BB’s upper band. As a result, Chainlink plummeted beneath the Bollinger Bands’ basis line to confirm a momentum shift toward selling tendencies.
Buyers keeping the $6.6 psychological support might welcome an immediate revival, pushing LINK towards the $7.3 – $7.9 territory in the upcoming sessions. Meanwhile, the price action might hover around the POC (Point of Control) before trend-altering moves emerge.
A potential closing beneath $6.6 would clear the road for LINK to test BB’s lower band before exploring the baseline at $5.9. The MACD (Moving Average Convergence Divergence) displayed a bearish cross on the 24hr chart. However, the lines remained beyond the zero level. Such crossovers beyond the equilibrium attract short-term pulldowns.
What Network Growth and Social Dominance Suggest
Santiment’s data shows LINK experienced a swift drop in Social Dominance and Network Growth on the daily chart since mid-last month sessions. Nevertheless, late October trading saw the price action recording an uptick, triggering a divergence with these indexes.
Continued BTC deterioration in the upcoming sessions could see LINK buyers finding it challenging to confirm its social dominance within the coming times. Nevertheless, targets would stay as discussed.
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