The end of the trading month on the LINK market is not so bright. A sharp price fall on 23 December by almost 40% reminded investors how quickly the mood in the cryptocurrency market can change.
The main catalyst for a powerful downward momentum was the fact of breaking the global trend line of buyers. For almost 3 months, the trend of buyers depended on this line, each time turning around after the test.
In fact, during the day, sellers managed to touch the price range of 23 August and take away all the profits of investors for 3 months. In addition, the long-suffering range of $12.6-13, again found itself under the power of sellers.
If we look at the trading history from September 2020, we see that this range is the main problem of buyers. After breaking this range in late November, buyers did not have the strength to keep it. With systematic attacks, sellers managed to push the price below the range of $12.6-13:
Buyers seek to maintain the trend
Among the positive facts on the LINK market is a sharp buy out of the coin and the candle closing on 23 December above the mark of $10.6.
In fact, the falling momentum lasted only 1 hour and was more like knocking out stop orders from buyers. After this event, the LINK price did not fall below $10.6. Summarizing the above, the best-case scenario for the LINK market is to continue consolidation in the range of $10.6-13 and accumulate positions for the future rally.
Fixing the Link price above $13 will free buyers’ hands for the historical high test.
LINK/BTC market has been dominated by bears since August 2020
However, given the chart of the LINK/BTC pair – the medium-term scenario of LINK price movements can be quite deplorable for investors:
The active growth trend of the LINK/BTC pair began on 13 May 2019. This trend was supported by increased volumes. Buyers controlled the market until early December 2020.
Furthermore, the trend broke but did not change. The chart shows that sellers managed to correct global LINK/BTC growth by 78.2%. Breaking the current price range down will finally weaken Link and open new horizons for the LINK price to fall.
A similar situation we see in the LINK dominance chart:
Trading volumes in the LINK market confirm the lowest interest of investors in this coin. So, of course, among the DeFi project, Link is steady in terms of daily volumes. Though, compared with the main giants of the crypto world, this coin is in 9th place. The days when Link was in the top 5 most voluminous coins are over.
Therefore, there are prerequisites to consider the negative scenario of breaking the mark of $10.6 and $8-8.5 re-test. Let’s see whose defence will be stronger!