- Chainlink took a 36% nosedive after surging to an all-time high of $20.
- Although prices have been able to recover partially, multiple on-chain metrics spell trouble.
- Breaking through the $14.4 support level could see LINK fall towards $11.
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Chainlink has been consolidating within a narrow trading range over the past week. Although different technical indexes call for a rebound towards recent all-time highs, multiple on-chain metrics suggest a continued downtrend is still on the cards.
More Lackluster Price Action Ahead for Chainlink
LINK went from trading at an all-time high of $20 to a low of $12.8.
While prices have recovered partially since then, it was not until recently that the TD sequential indicator presented a buy signal on this cryptocurrency’s daily chart. The bullish formation developed as a red nine candlestick that transitioned into a green one candle due to the upward price action.
This technical index estimates a one to four daily candlesticks upswing.
Nonetheless, IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model suggests that Chainlink is poised to consolidate for an extended period.
This fundamental metric reveals there is a critical resistance level ahead of the cross-chain data oracles token that could hold surging prices at bay. Based on the IOMAP cohorts, roughly 6,000 addresses had previously purchased more than 21 million LINK between $15.8 and $16.2.
Such a massive supply barrier may have the ability to absorb some of the buying pressure. If prices advance to this level, holders who have been underwater will try to break even on their positions, preventing prices from climbing further.
On the flip side, the IOMAP shows…