Two of today’s notable market performers in the cryptocurrency world, Chainlink (LINK) and Dogecoin (DOGE), have recently seen a surge in their prices, boosting investors’ portfolios. However, both coins have lost their bullish dominance at higher levels, leading to a decline in their values.
The rise in LINK and DOGE prices can be attributed to specific factors. Chainlink’s surge was driven by positive developments in the Chainlink network, particularly the launch of the Cross-Chain Interoperability Protocol (CCIP). This event attracted whale investors who traded their ether for LINK, contributing to the upward trend.
On the other hand, Dogecoin experienced a notable increase in value following a tweet from well-known entrepreneur and Dogecoin enthusiast Elon Musk. In his tweet, Musk shared a meme featuring the popular cartoon character Scooby-Doo with the caption “Doges ftw [for the win].” This tweet sparked interest among investors and caused a rise in DOGE prices.
However, both coins quickly reversed their upward trend as the excitement faded. The absence of buyers at these elevated levels resulted in a sharp drop in the value of both Chainlink and Dogecoin. This is not uncommon in the volatile cryptocurrency market, where skyrocketing prices often lead to subsequent corrections.
As for Chainlink, its current price stands at $8.4; however, it experienced a heavy drop after reaching this high point. The bulls are now attempting another push to surpass $8.3 and target a break above $8.7. Yet, they are likely to face resistance from the bears. If the price reverses from $8.3, a nosedive to $7.2 could be seen. At this lower price point, the bulls may be enticed back into the market, resulting in a bouncing price between $7.2 and $7.7 for a few days. However, if the bulls manage to break through $8.7, there is potential for a rally up to $9.5.
On the other hand, Dogecoin managed to surpass an important resistance level at $0.071 with the help of buyers. However, the lengthy wick on the candlestick indicates a strong sell-off when the price climbed to $0.074. The bulls are facing challenges in breaking through the immediate resistance above $0.07, making it more likely for the price to dip towards $0.067. Consequently, the price may remain sideways between $0.06 and $0.07 for some time. To establish a new upward trend, the bulls need to sustain the price above $0.071, which could potentially lead to further increases up to $0.074 and even $0.081.
Overall, Chainlink and Dogecoin experienced significant gains followed by corrections in their prices. The future trajectory of these cryptocurrencies depends on the ability of the bulls to overcome the bearish pressure and sustain their upward momentum. Investors should closely monitor market trends and key resistance levels to make informed decisions when trading these coins.