The Chainlink (LINK) market is abuzz with chatter after a popular cryptocurrency analyst issued a bearish forecast. In a recent analysis, CryptoWzrd predicted a continued downtrend for LINK in the coming days, but also hinted at a potential “scalping” opportunity for agile traders.
Related reading
Scalping refers to a high-frequency trading strategy in which investors take advantage of minor price fluctuations over a short period of time. CryptoWzrd believes that LINK's current downtrend provides an entry point for such tactics. However, the analyst stressed the need for a strong trade signal before recommending a scalp.
The next big move up from this level will be a significant indicator for the market as a whole, and LINK in particular, the analyst said in his projection. This cryptic message reverberated throughout the crypto community, with traders eagerly awaiting CryptoWzrd's next move.
LINK Daily Technical Outlook:$LINK closed bearish today and the next move from the current location will lead the way. I will look to get a quick scalp once there is a quality trade setup 🧙♂️ pic.twitter.com/OIWSBqxGJM
– CRYPTOWZRD (@cryptoWZRD_) June 8, 2024
An analyst assesses market trends and trajectories
Its review has attracted considerable attention, particularly among active traders seeking an edge in the often unpredictable cryptocurrency market. Its emphasis on short-term trends and scalping opportunities resonates with those who favor a more hands-on approach over buy-and-hold strategies.
The analyst's focus on quick scalps highlights the volatile nature of the cryptocurrency market. Unlike traditional investments, cryptocurrencies can experience significant price swings within minutes, making them an ideal hunting ground for scalpers with lightning-fast reflexes and a deep understanding of technical indicators.
Chainlink 200-day SMA predicted for growth
Meanwhile, technical analysis predicts that Chainlink's 200-day simple moving average (SMA) will rise over the next 30 days, closing at $17.05 on July 9, 2024, while the short-term 50 SMA days will close at $18.14 on the same day. .
Additionally, the Relative Strength Index (RSI) is neutral with a value of 45.80. According to the RSI, the market is currently neutral for Chainlink, indicating that the cryptocurrency is neither overbought (above 70) nor oversold (below 30).
LINK price prediction
The flow predictions for LINK suggests a potential price increase of 32%, reaching $21.53 by July 9, 2024. This optimistic outlook comes despite the current bearish sentiment indicated by the technical outlook.
Related reading
The Fear & Greed Index, which stands at 75 (Creed), reflects a high level of investor confidence, typically associated with a bull market phase. However, the contrast between bearish technical indicators and eager market sentiment highlights a gap that investors should approach with caution.
Featured image from Pexels, chart from TradingView