An important correction phase is preparing for both oracle projects Chainlink and Band Protocol as they both surged by 25% in the past week but their uptrends could even reach exhaustion soon so let’s read more in our chainlink coin news.
Chainlink increased by 27% since October after breaking out of the descending parallel channel. Band Protocol skyrocketed more than 50% within the same period but despite the considerable upward pressure as the TD sequential index forecasts that both of the cryptocurrencies are bound for a steep correction. More than $40 million flooded the market in the past week which allowed Chainlink and BAND to get massive gains. Now it seems like these oracles tokens have reached exhaustion which shows there are more losses on the horizon.
Chainlink entered a significant corrective period after reaching an all-time high of $20.3 in August. As the prices made lower lows and lower highs during the 64% retracement, the descending parallel channel formed in a 12-hour chart. The technical pattern was able to contain LINK’s price action for about two months but the spike in buying pressure behind the decentralized oracle token was strong enough to push it outside of the channel. The breakout was followed by a 27% jump which saw the prices increase to a high of $11.8.
While LINK could have more gas in the tank to speed up at $13 based on the descending parallel channel, some of the other technical indexes showed a retracement before the higher highs come. The TD Sequential indicator presented a selling signal recently at the key barrier on the 12-hour charts for LINK. The bearish formation developed in a form of a nine candlestick after the prices got rejected by the 100-twelve hour moving average.
As the important correction prepares for both assets, a spike in the selling orders behind the decentralized oracles token could see the prices retrace to the 200 or 50-day moving average. The areas of support are now hovering around $10.7 and $9.8. Looking at the IntoTheBlock In/Out of the Money Around The Price model, the short-term pessimistic trend holds. Based on the on-chain metric, the most important level of support below Chainlink lies between $10.3 and $10.7.
About 8000 addresses purchased more than 30 million LINK previously. With a huge supply like this one, there could be more strength to keep the falling prices at bay as the holders in this price range will do anything to avoid seeing the investments go into the red zone. They could purchase more tokens to absorb some of the selling pressure and to push the prices higher. Bouncing off the $10.7 support level will leave Chainlink open to bullish impulse at $13.
The IOMAP model shows no significant resistance in-between the price points other than the 100-day moving average. By turning this trend into support, the odds for more advancement will drastically increase. Like chainlink, BAND also enjoyed an impressive rally over the past week. The cryptocurrency surged by about 50% since October 7 from a low of $5 to $7.5.