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Chainlink price analysis: LINK faces rejection at $18.4, more damage ahead?

Chainlink price analysis LINK faces rejection at more damage ahead

TL;DR Breakdown

  • Chainlink price analysis is bearish today.
  • Strong resistance is present at $20.2.
  • Support for LINK/USD is present at $16.8.

The Chainlink price analysis is bearish today, as the market pressure is again working against the cryptocurrency. The bears are maintaining the downtrend continuously, and steep lower lows are evident on the charts. On 13th December, the bears brought the latest steep loss of value for the coin when it fell below the $20 psychological mark. However, yesterday on 14th December, bulls made some recovery and provided support for the coin price value, but as can be seen on the charts, the bullish episodes are becoming smaller and smaller with the passage of time, and this time bears have shown up after just a day of bullish activity.

LINK/USD 1-day price chart: Bears returned sooner than expected

The 1-day price chart for Chainlink price analysis shows a decrease in price as the bears have made a return quite earlier than expected, and the LINK price has come down to $18.23 at the time of writing. After every steep loss, the bullish episode continued for three to four days, with small recoveries made during the bullish days. However, this is not the case this time as the price is going down again after only one day of recovery, as the market pressure has built up quite fast.

Chainlink price analysis: LINK faces rejection at $18.4, more damage ahead? 1
LINK/USD 1-day price chart. Source: TradingView

Despite the price on a downtrend today, the LINK/USD pair still reports an increase in price value by 2.11 percent due to the bullish activity of yesterday, but on the other hand, the coin reports a loss in value by 16.33 percent over the past week as the overall trend has been downwards from 12th November. The trading volume has decreased by 15.5 percent as well, resulting in a market dominance of 0.42 percent.

The volatility is relatively high due to the strong bearish trend, with the Bollinger bands traveling downwards as well. The upper band is present at the $26.8 mark, and the lower band is present at the $16.5 mark representing support for the LINK. The mean average of the indicator is present at $21, representing resistance for the coin. The relative strength index (RSI) is trading at a lower level of index 35, but the curve of RSI is not steeply downwards, hinting at a lack of momentum even from the bearish side; this can be the only hopeful sign.

Chainlink price analysis: Recent developments and further technical indications

The 4-hour Chainlink price analysis shows the price breakout was downwards today, following a good bullish activity at the end of the last trading session. The bears are still exerting pressure as the price function is still continuing downside.

Chainlink price analysis: LINK faces rejection at $18.4, more damage ahead? 2
LINK/USD 4-hours price chart. Source: TradingView

The volatility is comparatively high on the 4-hour chart as well, as the Bollinger bands started to expand on 13th December, and now they are covering more area with the upper band at the $20 mark and the lower band at the $18.1 level representing support for the coin, whereas the average line of the indicator present at the $18.8 represents resistance for the crypto pair. The RSI is also headed downwards here as well, as it is trading at index 42, but the slope is humble. The price is also maintaining its level above the moving average, which is present at $18.1.

Chainlink price analysis: Conclusion

The Chainlink price analysis shows bears are carrying the lead for today. However, the momentum is not aggressive today as the downwards price oscillation is slow, which RSI is also confirming from its humble downslope. If bears gain more momentum in the coming hours, the LINK may revisit the $16 range. On the other hand, there are imminent chances for the bulls to make a comeback, as the selling pressure is there but can be reversed for today if the bulls get a little support. But we assume, even if LINK recovers, the recovery may remain in the $18 range or maybe towards the $19 range at most.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Aamir Sheikh

Aamir Sheikh

Amir is a media, marketing and content professional working in the digital industry. A veteran in content production Amir is now an enthusiastic cryptocurrency proponent, analyst and writer.

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