- LINK moved lower overnight.
- Support around the $20 mark still holds.
- Resistance at $26.
Chainlink price analysis is bearish for today as the market retested support at the $20 mark overnight prepares to breakthrough. Therefore, we can expect LINK/USD to spike to the $15 mark over the next few days.
Cryptocurrency heat map. Source: Coin360
The overall market trades in the red over the last 24 hours. Bitcoin has remained relatively flat, while Ethereum is down by almost a percent. The rest of the altcoin market follows this pattern of slightly bearish performance.
LINK/USD traded in a range of $20.10 – $21.94, indicating a moderate amount of volatility. Trading volume has decreased by 34.2 percent and totals $750 billion. Meanwhile, the total market cap stands at $8.94 billion.
LINK/USD 4-hour chart – LINK retests $20 support
On the 4-hour chart, we can see the Chainlink price action continuing to retrace over the past days and reaching the $20 mark, which likely will be broken later today.
LINK/USD 4-hour chart. Source: TradingView
Looking at the Chainlink price action development over the past weeks we can see that the market continues to retrace from the $35 previous major swing high. So far a retracement of over 40 percent has been set to the $20 support.
This comes after a very strong move lower in May, after which a clear support level was established around the $15 mark, where LINK/USD saw a quick spike higher. From there, LINK/USD reached the $35 resistance, which needs to be broken, if we want to see a clear signal for the overall trend reversal back to the upside.
Over the past days, a slightly higher high was set around the $26 mark, indicating that bulls are looking to take over the price action momentum. However, since the Chainlink retraced all the way back to the $20 mark, we can assume that the market is still bearish.
Therefore, another lower low might be seen over the next 24 hours as LINK/USD continues to retrace further to the $15 previous major support. Alternatively, if the $20 mark holds, we can expect another attempt to push higher above the $26 current local high.
Chainlink price analysis is bearish as we can expect the $20 mark to break later today. From there, the next support is located around the $15 mark and would mean a drop of 30 percent.
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