The Chainlink (LINK) market is buzzing after a popular cryptocurrency analyst issued a bearish forecast. In a recent analysis, CryptoWzrd predicted a continuation of the downtrend for LINK in the coming days, but also suggested a potential “scaling” opportunity for nimble traders.
Scalping refers to a high-frequency trading strategy in which traders profit from compact price fluctuations over a brief period of time. CryptoWzrd believes that the current bearish trend on LINK is a starting point for such tactics. However, the analyst stressed the need for a powerful trade signal before recommending a scalp.
Another large break from this level will be an critical indicator for the entire market, and specifically LINK, the analyst said in his projection. This mysterious news caused a storm in the cryptocurrency community, with investors eagerly waiting for CryptoWzrd’s next move.
LINK Daily technical forecast:$LINK closed bearish today and the next move from your current location will guide the way. I’ll be looking to get a scalp quickly as soon as a quality trading setup becomes available 🧙♂️ pic.twitter.com/OIWSBqxGJM
— CRYPTOWZRD (@cryptoWZRD_) June 8, 2024
The analyst evaluates market trends and trajectories
His research has generated a lot of interest, especially among busy traders looking for an edge in the often unpredictable cryptocurrency market. His focus on short-term trends and scalping opportunities appeals to advocates of a more hands-on approach compared to buy-and-hold strategies.
The analyst’s emphasis on rapid scalping highlights the volatile nature of the cryptocurrency market. Unlike conventional investments, cryptocurrencies can experience significant price fluctuations in a matter of minutes, making them ideal hunting grounds for scalpers with lightning-fast reflexes and a deep understanding of technical indicators.
Chainlink 200-day SMA expected to rise
Meanwhile, technical analysis predicts that Chainlink’s 200-day uncomplicated moving average (SMA) will rise over the next 30 days, closing at $17.05 on July 9, 2024, while the short-term 50-day moving average SMA will close at $18.14 on the same day.
Moreover, the relative strength index (RSI) is neutral at 45.80. According to RSI, there is currently a neutral market sentiment for Chainlink, which indicates that the cryptocurrency is neither overbought (above 70) nor oversold (below 30).
LINK Price forecast
Current forecast for LINK suggests a potential price raise of 32%, reaching $21.53 by July 9, 2024. This sanguine forecast comes despite the current bearish sentiment indicated by the technical outlook.
The Fear & Greed Index of 75 (Greed) reflects the high level of investor confidence typically associated with a bullish phase. However, the contrast of bearish technical indicators and greedy market sentiment highlights a divergence that investors should approach with caution.
Featured image from Pexels, chart from TradingView
