Chainlink (LINK) has seen a 14% decline in value over the past seven days, mirroring the broader market downtrend. This double-digit drop has pushed Chainlink’s price below critical support levels, making it difficult to regain upward momentum without new demand entering the market.

This analysis highlights why LINK holders may need help to turn a profit over the next few weeks. 

Chainlink to Lose Key Support Levels

Chainlink’s price movements assessed on a one-day chart reveal that it now sits below its 20-day exponential moving average (EMA). An asset’s 20-day EMA tracks its average price over the past 20 trading days. It gives more weight to recent prices, making it useful for identifying potential reversals or trends in price action.

When price falls below this key moving average, it suggests that the short-term trend has turned downward and that further price declines are more likely.

Read more: How to Buy Chainlink (LINK) With a Credit Card: A Step-By-Step Guide

Furthermore, Chainlink’s price is poised to break below its Ichimoku Cloud, lending credence to its bearish outlook. The Ichimoku Cloud gauges market trends, momentum, and support/resistance levels. When an asset’s price drops below the Cloud, it suggests a bearish phase, indicating that downward momentum is prevailing.

When this happens, the Cloud becomes a resistance level, making it more challenging for the price to rise above it without a surge in buying pressure.

LINK Price Prediction: Only a Surge in Buying Can Save the Day

LINK’s Aroon Down Line, which tracks the strength of its downtrend, currently stands at 92.66%, confirming the token’s strong price decline.

A reading near 100% indicates that the price has consistently made lower highs, signaling a strong downtrend. If this trend persists, Chainlink’s price could drop another 27%, potentially revisiting its August 5 low of $8.12.

Read more: Chainlink (LINK) Price Prediction 2024/2025/2030

However, if the altcoin sees a resurgence in buying pressure and breaks above its Cloud and 20-day EMA, Chainlink’s price may climb toward $19.73.

Bitwise Asset Management wants its crypto futures ETF (exchange-traded fund) converted from long-only strategies to rotate between crypto and US Treasuries exposure depending on market trends.

Crypto adoption continues to grow, with institutional players like Bitwise extending their reach in the space.

Bitwise Wants Its Futures ETFs to Align with Crypto and US Treasuries Trend

The firm is pushing for conversion to strategic financial instruments, ones that show flexibility to market trends in offering exposure to crypto and US treasuries.

“We have Bitwise out with another ETF filing. It will be a treasury and bitcoin rotation strategy. The ticker will be BITC,” ETF specialist James Seyffart remarked.

The conversion could happen around December 3, 2024, with the funds expected to change their names and strategies, specifically:

• BITC, the Bitwise Bitcoin Strategy Optimum Roll ETF, will become the Bitwise Trendwise Bitcoin and Treasuries Rotation Strategy ETF.
• AETH, the Bitwise Ethereum Strategy ETF, will convert to the Bitwise Trendwise Ethereum and Treasuries Rotation Strategy ETF.
• BTOP, the Bitwise Bitcoin and Ether Equal Weight Strategy ETF, will convert to the Bitwise Trendwise BTC/ETH and Treasuries Rotation Strategy ETF.

Read more: What Is a Bitcoin ETF?

The ETFs would adopt Bitwise’s proprietary “Trendwise” model, rotating from crypto into treasuries and vice versa. This strategy would minimize downside volatility while achieving long-term price appreciation.

“The new Trendwise strategies capitalize on that momentum through a trend-following strategy that rotates between crypto and Treasuries exposure based on market direction. The goal is to help minimize downside volatility and potentially improve risk-adjusted returns,” an excerpt in the press release read, citing Bitwise CIO Matt Hougan.

The strategy, which utilizes the 10- and 20-day exponential moving averages (EMA) of crypto assets like Bitcoin and Ethereum, invests in these assets when the 10-day EMA surpasses the 20-day EMA, indicating upward momentum. When the trend reverses, the investment rotates into Treasuries.

Despite these shifts, the funds’ expense ratios and tax treatments will remain unchanged, meaning that existing investors do not need to take any action ahead of the conversions.

Bitwise, a prominent player in the crypto industry, provides exposure to Bitcoin and Ethereum through its crypto ETFs, BITB and ETHW. In August, the firm expanded its footprint by acquiring European crypto fund provider ETC Group and recently filed for a spot XRP ETP.

Despite these positive strides, Bitwise is currently facing legal challenges. As reported by BeInCrypto, Vandelay Industrieshas accused Bitwise and its top executives of financial misconduct, seeking $2 million in damages. This lawsuit adds a contentious element to what has otherwise been an eventful year for the asset manager.

Solana’s (SOL) price has faced a tough time maintaining its upward momentum, particularly after repeated failed attempts to secure $161 as a support level over the past two months. 

Another failed breach of this level recently triggered a 13% decline in SOL’s price, pushing it down to $139. As the cryptocurrency battles ongoing downward pressure, traders are left wondering if further declines are on the horizon.

Solana Traders Have a Trick up Their Sleeve

At the moment, the macro momentum for Solana is pointing toward a bearish outlook, as reflected in key technical indicators. The Relative Strength Index (RSI) has fallen below the neutral line of 50.0, signaling increasing bearish momentum. RSI’s position in the bearish zone suggests that selling pressure has intensified, with little indication of a reversal in the near term.

Following Solana’s failed breach of the $161 resistance level, the buildup of bearish sentiment has gained strength. With the RSI showing no signs of recovery, it appears that SOL is set to face more downward pressure in the short term, potentially leading to further price declines.

Read more: Solana vs. Ethereum: An Ultimate Comparison

Market sentiment around Solana has also shifted to the downside. Traders are positioning themselves to capitalize on a potential further decline by placing short contracts in the Futures market. These short contracts have now surpassed long contracts as traders look to profit from SOL’s falling price. 

This sentiment shift is further evidenced by Solana’s funding rate, which has turned negative for the first time in over two weeks. The negative funding rate indicates that the market is now predominantly bearish, with traders anticipating more losses in the near future.

SOL Price Prediction: Finding Support

Solana’s price is currently trading at $139, just below the local support level of $140. Considering the ongoing bearish momentum and negative market sentiment, a further drop to $124 is more likely. This level acted as a support for SOL last month, with the cryptocurrency bouncing back from it previously.

However, if Solana fails to hold the $124 support level, a drop to $120 could be next, forming the lower limit of the consolidation range under $161. This would represent a further decline for the cryptocurrency, leaving it vulnerable to additional losses.

Read more: Solana (SOL) Price Prediction 2024/2025/2030

On the other hand, if Solana manages to flip $140 into a support level, it could have a chance to rise back toward the $160 range. Breaching the local resistance at $155 would invalidate the current bearish outlook, giving SOL a renewed opportunity to recover and potentially push higher in the weeks ahead.