The Chainlink price fell to the lowest level since October 17, mirroring the performance of most cryptocurrencies.
Summary
- Chainlink price has formed a bearish pennant pattern.
- LINK has also formed a death cross, indicating more downsides.
- The coin may continue to fall at the upcoming SmartCon conference.
Chainlink (LINK), the crypto industry’s largest oracle, fell to $16, down 42% from this year’s high, as traders focus on the upcoming SmartCon Conference.
SmartCon Conference starts this week
One of the main catalysts for the LINK award this week will be the annual SmartCon conference, which takes place on Tuesday and Wednesday.
SmartCon is a popular event that brings together senior executives from Chainlink and representatives from some of the largest financial companies.
According to the website, some of the top companies represented include Swift, DTCC, JPMorgan, Consensys, State Street, TradeWeb and Robinhood.
The SmartCon event is usually important because of the partnerships and deals that are made. One of these deals was announced on Monday, when FTSE Russell said it will publish its indices onchain via its DataLink service. It also announced a partnership with the Central Bank of Brazil and the Central Bank of Hong Kong.
While the event is considered significant, Chainlink price will likely depend on prevailing market conditions, which explains why the sell-off continues.
Meanwhile, data from Nansen shows that the number of LINK tokens on exchanges has continued to decline this year. They fell to 233.6 million, down 12% in the past 30 days. As of October 10, there were more than 283 million tokens in circulation.
Chainlink price technical analysis
Technical indicators suggest that LINK price has crashed in recent months. It has fallen from a high of $27.83 in August to the current $16.
The coin is now forming a death cross as the 50-day and 200-day weighted moving averages have crossed. A death cross is one of the most bearish technical analysis patterns.
The coin has also formed a bearish pennant pattern. A vertical line and a symmetrical triangle characterize this pattern. It is one of the most bearish continuation patterns.
Chainlink price has remained below the Supertrend indicator and the 61.8% Fibonacci Retracement level. Therefore, the token is likely to continue falling as sellers target the key support at $14.90, the October low.
On the other hand, a move above the $18 resistance level will negate the bearish view. A move below that level will indicate more gains in the short term.