Chainlink Price Looking at a Potential Bounce-back: When and How?

Over the last three weeks, Chainlink ($LINK) price has been under pressure, with its price decline sending many traders packing. However, recent market sentiment and historical chart patterns show that the token could start a recovery soon.

In the case of Chainlink and Quant ($QNT), as more and more believe the worst, those who take advantage of the time to buy may be able to restore a few percentage points.

Chainlink Price’s Recent Dip and Current Sentiment

For the past three weeks, Chainlink has been on a price dip. It has caused many traders to believe that the token will continue the downtrend for a while. The market sentiment has turned negative as the FUD for both Chainlink and Quant has increased.

However, as with any market trend, there’s often a price movement that goes against it. That suggests LINK may bounce back soon.

Recent data indicates that Chainlink has had its lowest sentiment levels for the year. According to a chart by Santiment, Chainlink’s social media sentiment has fallen to its lowest levels recently. It also shows that the price of Chainlink correlates.

However, this type of sentiment usually leads to a reversal in the price in the near future. That’s because the masses become pessimistic the majority of the time and the market psychology changes.

Social media data shows that Chainlink has a negative sentiment, which requires consideration. It is only the third and fourth time so far this year that the crowd is more negative than positive about Chainlink.

Historically, negative sentiment such as this could be a precursor for a recovery. The price dip and the influx of negative sentiment could mean that the asset is actually undervalued and about to reverse.

Also, sentiment analysis of Quant ($QNT), which is also showing a similar negative trend, seems to indicate the same. Since both assets are bearish, the latter could signal a more significant move in the market.

Usually, when such FUD surrounds many assets, they tend to counter the crowd’s sentiment and begin developing their own story. It could lead to a bounce back of both Chainlink and Quant’s price.

LINK Price Prediction and Market Outlook

As per CoinMarketCap data, the current Chainlink price is $12.39, down 2.1% in the last 24 hours. It puts LINK in a critical price zone. According to recent chart patterns and market sentiment, Chainlink’s pivot could be at the bottom of its recent dive.

On the historical chart data, we can clearly see some historical trends of LINK price movements over the past months. It has recovered substantially after the periods of the price dips.

The price action has been overly downtrended over the past few months, trading within a channel with a downtrend. If we look at the range of this channel lately, we can observe that the price is coming up to the upper boundary of the channel. This traditionally means a possible chance to buy.

The Chaikin Money Flow (CMF) indicator also shows a fall in buying pressure, although this may imply a loss of selling pressure. When combined with the current price action, this indicates that Chainlink price may be ready for a reversal.

Chainlink was trading at $12.39 as of press time, and it moved across $12.65 areas in most of the day’s trading. Based on how it behaved at previous prices, LINK crypto has repeatedly established meaningful support levels after testing them. LINK could make a solid upmove if it remains above $12.00 (support area).

Chainlink will need to break out of its recent resistance levels, currently in the range of $13.50, to confirm a bounce back. If that breakout occurs, LINK price can resume its recovery. It may even aim at higher price levels in the upcoming weeks.