- Pullback pressure towards $20 – $22 trendline.
- Tight trading range and Low volatility
- Chainlink’s major ascending channel lies above $25
Chainlink (LINK) fell below the 200-day exponential moving average after the bulls failed to sustain an upward momentum at $23.51. The overall sentiment remains negative across the daily chart and suggests that the bears will continue pulling the price downwards below the $20 – $22 major trendline.
The relative strength index on the chainlink chart is adjusting from the neutral zone and heading towards the overbought region.Currently, the RSI is pointing to 45. Meanwhile, the current pattern is Chainlink’s attempt to consolidate from yesterday’s swing low to $20.
This consolidation will help break out from a wider declining wedge formed on the 4-week trendline after LINK crashed from the May high of $52. There is a lot of struggle among buyers to sustain an upward momentum beyond the moving averages due to the concentration of sellers at $22.
The coin’s 24-hour market has been dramatically bearish despite a 15 percent gain that took place at the close of yesterday’s chart. This saw the bulls gain an intraday high of $23.71 during the first few minutes of the early trading session.
Besides, the price is below the 50-day and 100-day simple moving averages, further suggesting a strong bearish market.
Chainlink has traded within a tight range since the start of the day. Both the upper and lower Bollinger bands are contracted, and the candlesticks are stuck below the middle line. The opening market price is $23.71, which also marks the daily high.
There is only a 1-point difference between the daily high and daily low, indicating inactivity and low volatility across the market. The bulls are attempting to remain solid above the $22.7 support to crash the descending channel that had formed on the 5-day chart.
During press time, Chainlink is struggling to sustain upward price momentum above $23.5 and breach an overhead resistance at $24.
If the bulls will lose their strength at the current support level, a plunge below $20 is on the sides. Should this happen, all buyer volumes will be scattered, and the chainlink’s market will be concentrated with sellers. This could extend a drop towards the $16 and $17 mark.
On the 4-hour Chainlink price analysis, the blue line has crossed above the zero marks indicating a buy signal for the bulls. The RSI is still sustaining momentum above 45. At the time of writing, Chainlink is trading at $23.43.
Chainlink’s major ascending channel lies above $25; the buildup of resistance in between the current price and the tip of the ascending triangle results from bears cashing out at the high price levels. This is why LINK has been trading below the 50-day SMA for quite a while. More buyer volumes are needed to support the market and sustain a strong rally.