Chainlink (LINK) followed in the footsteps of other cryptocurrencies and has seen a strong drop in the past few days.
The cryptocurrency has fallen below $ 9 for the first time in a few weeks, with a decline of approximately 9% in the last 24 hours. After reaching an all-time high just weeks ago, LINK has dropped more than 50% in this way. This is even worse than the performance of most other altcoins. According to CoinMarketCap data, LINK was trading at $ 8.84 at the time of writing.
LINK could prepare for a leap soon as basic reversal signals are currently occurring despite this drop. While LINK has its own technical advantages, it is also likely that Bitcoin’s price action will determine the overall direction of the crypto market going forward.
Return Signal Occurred
The Tom Demark Sequential indicator created a very important buy signal for LINK: 9 candles. This is a signal usually seen before a bullish reversal. The Tom Demark indicator is a time-based indicator that creates the “9” and “13” candles when at a turning point in an asset trend. This last signal indicates that Chainlink’s ongoing correction is almost exhausted and will likely reverse in the near future.
This bullish analysis came shortly after a trader noted that Chainlink is historically likely to exceed $ 20 in the future as it represents a potential bottom. Trader used the following statements:
“Offers for LINK now save a little around $ 10. If the price starts to bounce from the bad lows, it will create more dimensions if the override and trend confirm. I think this will be $ 28-32 in the next run. The BTC pair also looks set to come back soon. “