Chainlink Price Prediction: Slump Clears the Pathway to 6.25

Bearish Chainlink price predictions hit the market after the LINK/USDT pair slumped on Tuesday. The 9.71% slump came as the crypto market suffered a selloff following the Merge upgrade on the Ethereum blockchain. 

The LINK/USDT pair had started the day brightly and looked to be on the way to a third successive day of gains, but the inability to breach the 7.540 resistance led to a selloff that has taken out the previous gains for the week. 

So what is the state of the LINK/USDT pair as it affects Chainlink price predictions? On-chain metrics by IntotheBlock indicate that more than 70% of holders of the Chainlink token have held it for more than one year, while 28% have held it for the last 1-12 months. 2% have held it for less than a month.

In the last seven days, $53 million worth of Chainlink tokens have been moved out of exchanges, while $23.23m has flowed into exchanges. There are long-term Chainlink price predictions of recovery of this token, which is why more people are holding it in private wallets and have been doing so for more than a year. 

The downside move stemmed from the completion of the rising wedge, followed by the breakdown of the ascending channel by the 6 September candle. This has opened the door toward the 6.255 support (28 August 2022 low), but this move has to follow a rejection of the attempted return move to the broken channel’s trendline.

A breakdown will be on the cards if the bears attain this point and the bulls fail to mount a challenge. This breakdown will clear the pathway for a push toward the 5.863 support level (15 June low). Below this level, additional pivots are seen at 5.382 (13 June low) and at the 61.8% Fibonacci extension from the swing high of 13 August to the swing low of 28 August at 5.048.

On the other hand, a recovery beyond the 7.540 resistance (16/21 June and 6 September 2022 highs) invalidates the bearish outlook. The closing penetration above this resistance clears the pathway for the bulls to march toward 8.113 (6 August high). Above this level, the bulls have clear skies to aim for the 9.485 resistance (12 August high), but not before clearing the 7 June and 15 August highs that nestle around the 9.00 psychological price barrier.