Chainlink’s price action indicates that a major correction may be seen again and a retracement move is in progress.
Chainlink managed to retrace the $ 10 level as support last week. Now he seems to be facing a great resistance that could prevent him from going further.
Rejecting current price levels could cause the cryptocurrency to drop to $ 7.
Chainlink started the month of October with a bang, with prices rising more than 6.5% at the new monthly candlestick opening. Some technical and in-chain measurements show that LINK is about to undergo a major correction.
Chainlink Prepares for Another Fall
Chainlink has entered a period of significant decline after rising to all-time highs in mid-August, when its price dropped a massive 64%.
Despite the huge losses that have occurred, the decentralized oracles token does not appear to be out of danger yet.
LINK is currently facing a stiff set of resistance that could have the power to reject any further upward price action. This critical hurdle is supported by the upper limit of the descending parallel channel and the 100-day moving average when prices are falling.
Rejecting this level may cause a steep correction towards the lower boundary of the channel.
Looking at IntoTheBlock’s IOMAP model, it is possible to say such a decrease. Based on this on-chain metric, about 3,000 addresses had previously purchased about 30 million LINK for between $ 10.6 and $ 10.9. Therefore, it is seen as an important metric for investors.