- Chainlink price analysis is bearish today.
- LINK/USD is currently tradinga at $26.8.
- Closest support at $26.
Link price analysis is bearish today, as we anticipate additional downside following a rejection of the upside overnight. As a result, LINK/USD will almost certainly return to test the $26 vital support level.
The price of LINK/USD declined 1.10% on Friday to close at $30.56 after the bears successfully defended the downside above the $30.00 pivot level. Chart analysis will show that Chainlink attempted a bullish breakout during Asian trading hours but was rejected immediately by sellers who maintained firm control over proceedings until a late market dump took place.
Today’s candlestick has a long upper shadow and a small body, indicating that Chainlink bulls could not build sufficient momentum before being repelled from the important resistance levels provided by September 06-14. Furthermore, yesterday’s morning gap down at 02:38 UTC has filled, which means the bulls have lost their initial pressure. As a result, LINK/USD will likely decline to test vital support provided by the $26 price level.
If bears have control, LINK/USD will see range-bound trading between $26 and September 06-14 highs [$34.72] before returning to testing overnight lows of around $30 in later trading sessions before the end of this week. A break below the 25-period moving average [now at 29.00] could be material in triggering additional downside pressure that would likely see LINK/USD retest the important 50% Fibonacci retracement [23.03].
On balance, a further decline in Chainlink price towards the critical support zone outlined is the most likely outcome given the immediate strong resistance provided by the $30 price level.
LINK/USD 4-hour chart: LINK set to drop further?
On the four-hour chart, we can see that the Chainlink price has been rejected for additional upside overnight, implying that it will head lower later today.
The price of Chainlink has continued to move in a bearish direction during the past week. Following a strong start to November, when it rose by 10%, a substantial decline resulted in a new high set at $38.
The pair first dropped to $32, with consolidation taking place over several days. The bearish trend resumed on November 15th, pushing the price of LINK down to $28. On November 18th, the price dropped even further, reaching an all-time low at $26.
Chainlink began trading at $30 in March but has fluctuated around this level since then. Chainlink’s price has remained more or less constant at around $28 for the past few months. The price of LINK/USD is likely to fall further today as selling pressure remains high.
Currently, Chainlink price analysis is bearish, as the upside was denied overnight, resulting in another selloff this morning. LINK/USD is expected to fall even further later today and test the $26 support.
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