Chainlink price crashed to the lowest level since Oct. 17, mirroring the performance of most cryptocurrencies.
Summary
- Chainlink price has formed a bearish pennant pattern.
- LINK has also formed a death cross, pointing to more downside.
- The coin may continue falling during the upcoming SmartCon Conference.
Chainlink (LINK), the biggest oracle in the crypto industry, dropped to $16, down by 42% from its highest point this year, as traders focus on the upcoming SmartCon Conference.
SmartCon Conference begins this week
One of the top catalysts for the LINK price this week will be the annual SmartCon Conference, which runs Tuesday and Wednesday.
SmartCon is a popular event that brings together senior Chainlink executives and representatives from some of the largest financial companies.
According to its 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 Brazil’s Central Bank and Hong Kong’s Central Bank.
However, while the event is considered important, the Chainlink price will likely depend on prevailing market conditions, which explains why the sell-off is continuing.
Meanwhile, Nansen data shows that the number of LINK tokens on exchanges has continued to fall this year. They dropped to 233.6 million, down by 12% in the last 30 days. There were over 283 million tokens in exchanges on October 10.
Chainlink price technical analysis
Technical indicators suggest the LINK price has crashed over the past few months. It has plunged from a high of $27.83 in August to the current $16.
The coin has now formed 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 will likely continue falling, as sellers target the key support at $14.90, its lowest level in October.
On the other hand, a move above the $18 resistance level will invalidate the bearish view. A move below that level will point to more gains in the near term.
