Chainlink has seen some mixed price action as of late, with bulls unable to gain a decisive edge over bears as the entire market turns lower.
LINK isn’t the only cryptocurrency that has been struggling to gain any bull-favoring momentum, as most other cryptocurrencies have also seen some intense selling pressure that has slowed their growth and erased some of their recent gains.
For instance, Bitcoin is currently stuck below $18,000 as sellers try to revert its trend into their favor. They have yet to do this successfully, and it could still decline quite a way before it loses its macro bullishness.
However, altcoins have been struck particularly hard by the recent market-wide decline, with Chainlink now moving to the lower boundary of a pitchfork channel that has been formed and respected throughout the past year.
One trader is also noting that the cryptocurrency appears to be forming what could be the first “death cross” seen since 2018, which spells some serious trouble for its short-term outlook.
Just as LINK rose significantly in the years following 2018, this doesn’t mean that its macro-outlook will be changed by this technical development.
Chainlink Tracks Bitcoin – Moves Lower as Buyers Lose $12.00 Support
At the time of writing, Chainlink is trading down just under 2% at its current price of $11.68. This is around the price at which it has been trading throughout the past few days.
Bitcoin has been causing the entire market to face some intense weakness over the past few days and weeks, with its recent break below $19,000, causing it to see intense inflows of selling pressure that ultimately led it as low as $17,600.
Similarly, LINK has also shed some of its value, down from multi-week highs of nearly $16.00, set a few days ago.
LINK Posts First Death Cross in Years as Selling Pressure Mounts
One trader explained in a recent tweet that Chainlink is now posting its first “death cross” seen in years.
This grim technical sign also comes as the cryptocurrency nears the lower-boundary of a long-held channel that it has been caught within throughout the past year.
“First death cross on LINK / BTC since 2018,” he noted while pointing to the below chart.
Image Courtesy of Josh Olszewicz. Source: LINKUSD on TradingView.
Because Chainlink is closely tracking Bitcoin and the rest of the crypto market, where it trends in the mid-term should depend largely on the benchmark cryptocurrency’s price action.