Summary:
- Chainlink has been showing hints of decoupling from the rest of crypto
- Chainlink has been attempting to regain $8 as support
- Once $8 is reclaimed, Chainlink could be on a path towards the 200-day moving average at $9
Chainlink (LINK) has been attempting to decouple from the ongoing crypto market uncertainty brought about by Bitcoin reacting negatively to the continuing macroeconomic climate.
According to an analysis shared by the team at Santiment, Chainlink has been exhibiting the stated decoupling since September 21st. In addition, the digital asset had attempted to reclaim the $8 price area as support as high stakeholders continue to be active.
The team at Santiment shared their analysis of Chainlink through the following tweet.
🔗📈 #Chainlink has been showing hints of being somewhat decoupled from #crypto since September 21st, and has just reclaimed the $8 threshold again. High stake holders have been growingly active, and this is often the key to sustained #altcoin rallies. https://t.co/KsyRTpSHF3 pic.twitter.com/jDYZqubRIV
— Santiment (@santimentfeed) September 27, 2022
Chainlink Recapturing $8 Could Lead to $9 or Higher
A glance at the one-day LINK/USDT chart below reveals that Chainlink has since lost the $8 support and is trading at $7.70. However, it is showing some bullishness as it is trading above the 50-day (white) and 100-day (yellow) moving averages.
If Chainlink can maintain its current bullish momentum, it could push toward the $200-day moving average (green) of around $9. Such a successful move will open the doors to a journey towards the psychological support level at $10.
However, the daily MFI (green), RSI (red), and MACD hint at a reduction in buying interest. The daily trade volume is also in the red, further confirming a pending pullback as September comes to a close.
To note is that a bunch of Bitcoin futures contracts expire on multiple platforms (Deribit, CME Group, etc.) this Friday, September 30th. Therefore, volatility is expected this week, and Chainlink could drop back to the 50-day moving average of around $7.48 or the 100-day moving average of about $7.212.
News of Bank of England Buying Bonds Has Stimulated the Markets
A worst-case scenario would be Chainlink dropping to the June low of $5.30. Still, its likelihood is slim given the bullish reaction yesterday in the traditional and crypto markets after the Bank of England announced it was buying back bonds.
The Bank of England explained that the move was meant to ‘carry out temporary purchases of long-dated UK government bonds from September 28th.’ The primary purpose of the purchase ‘will be to restore orderly market conditions.’
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