Chainlink enjoyed a massive surge on Tuesday. It opened trading at $14.3 and shot up, peaking at $15.3 a few hours later.
The asset ended the previous day with gains exceeding 7% despite a slight correction. The hike is due to a new use case of the project. Hong Kong and Australia utilized the blockchain to facilitate a cross-border digital currency swap.
Chainlinks’ involvement marks a significant participation in blockchain use cases in the real world. It worked with Visa and ANZ to achieve its latest feat and will look to continue this role.
However, the hype surrounding this milestone has waned, and the coin is facing notable selling pressure. It retraced from $15.6 and trades at $14.9, down by over 3% over the last 23 hours.
How Low Will Chainlink Go?
The average directional index shrugged off the surges Chainlink had on Monday and Tuesday. It started its downhill movement on Sunday and continues in the same direction. It indicates strong bearish presence that will result in further price declines.
The relative strength index reflects a similar trend, retracing 4 points in the last 24 hours as selling pressure increases.
Chainlink is seeing a more than 11% decrease in trading volume as traders lose interest. The current price trajectory suggests that others are taking profits. These actions will result in further price declines.
The Fibonacci retracement level indicates the absence of a level with significant demand concentration before $14. The one-day chart shows that the asset may retrace as low as the 23% fib level at $13.5 following its failure to flip the 38% fib level.
Conversely, the moving average convergence divergence shows that Chainlink is gearing up for further increases. It displayed a bullish divergence, indicating an impending shift in the current price trend. The asset may retest the $16 in the coming days.
Uniswap is seeing a similar trend to LINK. The altcoin is experiencing massive profit-taking at the time of writing. It retraced from $8.66 to a low of $7.95. It has slightly recovered and is trading at $8.10.
The bulls are unable to sustain the surge following the price spike the asset saw on Tuesday. It opened the day at $6.84 and shot up, breaking its thirty-day high at $7.60. UNI continued to surge upward to a high of $8.68 and ended the session with gains exceeding 26%.
The asset received a massive boost from fundamentals during the previous intraday session. Positive rhetoric from the SEC chair towards DeFi fueled tremendous optimism about regulatory clarity. The project launched its v4 Hook Design Lab to enable better innovation in the decentralized finance space.
How Low Will UNI go?
Uniswap prints sell signals like Chainlink. The relative strength index shows that the asset was overbought during the previous intraday session. It surged to 72 but retraced on Wednesday as selling pressure spiked. The current reading suggests that the altcoin will see further correction. It favors a slip below $7.5.
However, the moving average convergence divergence shows that Uniswap is gearing up for further increases. It displayed a bullish divergence, indicating an impending shift in the current price trend. The asset may retest the $9.50 in the coming days.
