Since August 13, the Chainlink price has been in a strong bearish move. Today, with prices dropping by a percentage point, the bearish trend looks to have resumed after the recent sideways trend.
August Price History
The month of August started strongly, and at one point, Chainlink was up by 24 per cent. However, by mid-month, the prices had started to come down, and in the past ten trading sessions, the bearish trend has only become aggressively bearish, dropping by 30 per cent.
In the past four days, the strong bearish trend had stopped, and prices had started trading horizontally. However, today’s drop looks like the resumption of the strong bearish trend that has dominated the markets for more than a week.
Part of the reason we have seen the Chainlink price continue to plunge is due to the current market condition of the cryptocurrency industry. For more than a week now, the industry has been in a downward spiral, and despite gaining slightly today, major cryptocurrencies such as Bitcoin are still in a strong bear market. Chainlink, being a positively correlated altcoin to major cryptocurrency trends, has also been dragged down by the current drop in cryptocurrency markets.
Chainlink Price Prediction
With the current cryptocurrency trend being aggressive to the downside, there is a high likelihood that we may continue to see prices dropping in the next few trading sessions. Therefore, my Chainlink price prediction is for the price to start trading below the $7 price level in the next few trading sessions.
There is also a high likelihood that we might see prices break the August price lows and trade below the $6.6 price level. Based on the current price action, a trade below the $6 price level is also possible. A trade above the $8 price level will invalidate my analysis.