Chainlink (LINK/USD) has now lost key support. Does that ring a bear bell?

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Chain link (LINK/USD) is now threatening to drop to a new year low. That was after the cryptocurrency lost the $6 support, a crucial level it has held since May. The cryptocurrency trades hands at $5.75. This is not the lowest price of the year, which gives hope that it can still defend the support. However, assuming the price action, a breakout has already occurred and a bear market is likely to continue.

Chainlink Labs has done its part to counter the risks of FTX’s collapse. On November 10, the team launched a proof-of-reserve product to address future trust issues. The PvE product will help verify the centralized exchange’s asset reserves, its cross-chain collateral and off-chain bank account balances. It also helps to monitor the stock exchange’s real asset reserves. As a transparency measure, Chainlink appears to be heeding increased calls for reserve disclosures. Binance CEO Changpeng Zhao has previously supported the disclosure following the collapse of FTX.

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Despite the move intended to reassure investors, LINK has succumbed to the bear market. The monthly high of nearly $9.5 has since been followed by a near halving in the cryptocurrency price.

LINK Price Outlook As Weakness Moves Below $6

LINK/USD chart by TradingView

A clear breakout zone with $6 support occurred on the daily chart, confirming a bear market for LINK. The RSI has yet to reach the oversold level, implying that LINK still has room to fall further. Should bulls fail to halt the decline and return LINK to $6, the next level to watch is $4.5.

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When to buy LINK?

The market is very bearish for the Chainlink token. A breakout down the support and weak crypto sentiment reinforce a bearish bias.

It’s not time yet buy chain link until it settles on suitable support. A potential recovery to or above $6 could attract buyers. Otherwise, investors should consider buying LINK at $4.5 based on prevailing price action and sentiment.

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Where to buy LINK

eToro

eToro offers a wide variety of cryptos, such as Bitcoin, XRP and others, in addition to crypto/fiat and crypto/crypto pairs. eToro users can connect, learn from and copy or be copied by other users.

Buy LINK with eToro today

Bit stamp

Bitstamp is a leading cryptocurrency exchange that offers trading of fiat currencies or popular cryptocurrencies. Bitstamp is a fully regulated company that offers users an intuitive interface, a high level of security for your digital assets, excellent customer support and multiple withdrawal methods.

Buy LINK with Bitstamp today

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