The Chainlink price bounced back earlier on Wednesday after a 9.89% decline in its previous trading session. At the time of writing, the LINK price was up 4.05% at $26.775. Its total market capitalization has slipped more than 6.80% and currently stands at $12 billion. It ranks as the 15th largest digital currency between Binance USD and Litecoin.
Unlike most cryptocurrencies that have been on a rally, Chainlink seems to have been left behind. The Chainlink price has gained only 0.50% in the last seven days and has declined more than 7% in the past 24 hours.
The decline in the LINK price could be a result of the decline in its trading volume. The total volume of LINK traded in the past 24 hours slipped 4.95% to $1.55 billion. It is also almost 190% below its highest traded volume this year of $5.43 billion in May. A decline in its trading volume is a clear indication that the majority number of large holders of the coin have exited their trades.
While the surge in the Bitcoin price over the weekend boosted most altcoins, the decentralized oracle network remained unchanged. The coin has jumped more than 100% in the past four weeks. However, it is trading 51.45% below its highest level in May.
Analysts seem pessimistic about the Chainlink price as investors join in on the trade of better-performing coins such as Cardano, Binance Coin, and Terra.
LINK Price Analysis
The daily chart indicates that the Chainlink price has been under pressure for the past few days. The double top pattern formed between June and August may have triggered a slowdown in its rally.
LINK hit an intraday high at $26.879 before pulling back. It is trading slightly below the 200 DMA and above the 50 DMA. It is also hovering over the 50-day exponential moving average.
Therefore, the LINK price is likely to face a minor pullback before rebounding past August’s high at $30.617, which is almost 16% above its current price. On the flip side, a move below the 50 DMA will invalidate this view.