- Chainlink price analysis shows stagnation to continue below 200-day SMA
- LINK/USD climbs around 27 percent since June 12 but still remains under $27 resistance
- Declining trend line shows that bulls are having difficulty crossing $27 barrier
Chainlink is moving within a tight range and strictly within the Bollinger Bands. Unlike other altcoins, the LINK/USD is not able to depict any breakout patterns so far. The price has fallen from $26.13 to $23.45 level in the past 24 hours. Earlier, the price was hovering around the upper Bollinger Band with hopes of a positive breakout once the price closes above $27.00 level.
Sadly, the current Chainlink price analysis shows that the resounding 27 percent uptrend from the lows posted on June 12 has not been received well by the bulls. The volume data does not support the bullish uptrend as is evident from the descending channel and the 50-day average. The $27 resistance poses a significant challenge for the bulls ensuring the price remains under 200-day simple moving average.
After falling close to 70 percent from May 10 highs, LINK/USD has been unable to cross key resistances near $27 and $30. The pair has been unable to recover from the panic selling in terms of volume and liquidity. The low of $20.00 on May 12 has propped up some bullish action but Chainlink price analysis still shows significant cloudy behaviour.
The neutral to negative bias in the Chainlink price analysis also shows how the pair is perceived in the broader crypto market. Most altcoins have displayed bullish signs in their current price trajectory. Further trajectory is tricky as the pair consolidates near key resistance levels.
LINK/USD 4-hour chart: Emerging rally need massive volumes
The declining trend from May is still dominantly visible on the LINK/USD charts. The 200-day simple moving average is causing significant pressure on the pair near $26.45. Chainlink price analysis shows that the bulls must close above $27.00 to steer the pair in a bullish uptrend. The corrective uptrend after June 12 lows requires a combination of volume and liquidity.
On the 4-hour LINK/USd chart, the bulls must demonstrate the ability to move past the 200-day SMA. Above $27.00, the bulls need to confront massive volatility near the $30 resistance zone which is the .786 Fibonacci retracement of the current price. The journey towards $27.00 now looks filled with sharp declines as is evident from June 12 lows.
As the positive sentiment from Elon Musk tweet tapers off, the Chainlink price is likely to face more downturns ahead. The larger decline will temp the bears to take the pair towards $15.00 lower support. A significant resistance wall near $27.00 and $30.00 will limit the upside in the short-term. The RSI remains near 50 level alongside other technical indicators which also signal a neutral trend trajectory.
The bulls market sentiment in the crypto market is emerging out of the shadows. The crackdown on crypto firms in China has subsided and the BTC/USD is making steady gains. Even though Chainlink price analysis does not show any immediate upside, the pair is going to benefit from the broader crypto positive sentiment.
If the bull run resumes, buyers will demolish the $27.00 resistance first and then take on $30.00 resistance. Investors have been buying the dip which is evident from the strong support zone at $20.00. A severe price drop will certainly entice investors and buyers to undertake more long positions.
The bounce structure that LINK/USD painted on the 4-hour chart has been nullified in the recent downturn. The symmetrical triangle formation in the charts will also help the bulls define a bullish journey. The technical experts are also considering the ‘C’ wave pattern of the bulls which is likely to bolster more buying in the short term. Chainlink price analysis shows that the upper boundary of the symmetrical triangle at $27.00 will be the first near term target.
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