- Chainlink price analysis is bearish.
- LINK/USD retraced to $25 yesterday.
- The previous low at $23 is currently tested again.
Chainlink price analysis is bearish today as we anticipate another lower low to be made beyond the current support at $23, which would mark the end of a devastating 5% slide. The next major support for LINK/USD is seen at $22, and it will most likely be breached in the next 24 hours.
Mixed news flow is being seen in the cryptocurrency space, with regulators positively affecting business development while financial institutions are looking to explore blockchain solutions.
Today’s Asian session opened at $24 for LINK/USD, and we saw a sharp fall to $23 within an hour of trading. The previous low at $22 was taken out before we created new lows towards $21 over the past 24 hours.
The 100 SMA has crossed below the longer-term 200 SMA for Chainlink, indicating that sellers finally gained control of this market. This crossover point marks the line or support where buying pressure is expected to ramp up and push the price back towards the resistance at $27.
Alternatively, a break below this line of support will signal that selling pressure is picking up and may lead to a drop-down to either support at $21 or even the long-term floor at $20.
The RSI and Stochastic indicators have turned south, and both look ready to form bearish divergence patterns in their near-term outlooks. This suggests that bears are still in control while bulls need some more time to stage a comeback.
LINK/USD 4-hour chart: LINK set to drop further?
On the 4-hour chart, we see Chasinlink price retracing back to its $23 previous low this morning, which will likely lead to further selling later today.
The price of Chainlink has continued to fall this week. LINK/USD first fell below $38, the previous major swing high set on November 10th, and has since receded by around 40 percent to $23.
The price has continued to drop since then, and it appears that the bearish pressure is gaining momentum again. Yesterday, we witnessed LINK recover some of its losses and return to test previous resistance at $25 as a barrier. Bearish momentum had built up once more by the end of the day, resulting in additional declines during trading.
The $23 level was reached around midnight, with little consolidation since bears are still unwilling to break lower. However, later today, the Chainlink price should decline further as the overall momentum remains extremely negative.
The Chainlink price forecast is bearish today because we expect the value to drop further following this morning’s bearish momentum. The LINK/USD pair will most likely break lower by the end of the day, with support found at $22.
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