Chainlink Drops 28.70% in Month, POL Falls 31.10% Amid Bearish Trends

Chainlink (LINK) and Proof-of-Liquidity (POL), previously known as MATIC, are currently under scrutiny as their prices stabilize, indicating potential for upcoming trends. This analysis delves into the technical indicators and market movements to uncover signs of possible growth, keeping investors intrigued about which cryptocurrency might be gearing up for a breakout.

Chainlink’s price has experienced a significant decline over the past month, dropping by 28.70%, and has fallen by 51.34% over the last six months. The weekly decline of 9.25% further emphasizes the bearish trend. The price action during these periods shows strong selling pressure and limited recovery, as the asset struggles with ongoing market weakness and negative technical signals. Chainlink is currently trading within a defined range, supported at $10.30 and resisted at $19.80. Bears dominate as indicators like -1.63 on the Awesome Oscillator and -2.05 momentum reading confirm downward pressure. With a relative strength index at 33.13 indicating weak buying interest, the technical outlook remains bearish. Traders might look to short near the upper resistance on a spike, while a dip to $10.30 could provide opportunities for a minor rebound. Additional levels of resistance are at $24.55, with support around $5.55. Cautious entries with tight stops are advised while monitoring for sentiment shifts.

POL, on the other hand, has seen a price decline of 31.10% over the past month and 65.50% in the last six months. The weekly drop of 13.07% indicates consistent bearish action. The coin traded between $0.18 and $0.26, with sell-offs testing key price boundaries. Historical moves show that downward pressure emerged rapidly, with prices unable to sustain above resistance levels. Investors experienced a strong sell-off, and indicators like the RSI at 28.67 confirm oversold conditions, with no lasting recovery observed. Currently, the coin trades within a range of about $0.18 to $0.26, facing ongoing bearish pressure. The nearest support level is at $0.15, while clear resistance stands at $0.31. If buyers break through this resistance, an upward move could target $0.38. If the price falls below $0.15, further declines toward $0.08 may occur. Technical readings suggest bears dominate with negative momentum indicators and an RSI below 30, indicating oversold conditions. Traders should consider positions near support zones while remaining cautious of potential breaks below, given the indecisive market sentiment.

Both LINK and POL appear to be in a phase of consolidation. LINK shows steady support levels, while POL is also holding stable ground. Both coins have potential for upward movement if current patterns hold. Traders and investors are watching closely for any signs of breakout from this consolidation phase. Monitoring these developments will be key in understanding their next moves. The consolidation phase is seen as a positive sign, as it indicates that the cryptocurrencies are building momentum for a potential upward move. The technical analysis also highlights that POL is preparing for a strong bullish hold, which could lead to a significant price increase in the near future. Overall, the consolidation of both LINK and POL is seen as a healthy development, as it allows the cryptocurrencies to build a solid foundation for future growth.