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Chainlink Price Analysis: LINK stuck in a downtrend, needs to break trendline to form an uptrend

Chainlink price analysis

TL;DR Breakdown

  • Chainlink price analysis is bearish for today, dropping by nearly 8%.
  • The nearest support rests at $20, while the nearest resistance rests at $22.
  • Chainlink price chart shows bearish signals

Chainlink price analysis is bearish for today, dropping by a whopping 8% as the token lost its position in the top 20 cryptocurrencies. Chainlink‘s current price rests at $21, and chart patterns indicate that bears are in charge of the price action.

The LINK price opened the daily candle at $22.91, reaching a daily high of $23.05. But the bulls were unable to maintain this position on December 9, and as a result, prices fell back to the nearest support levels.

The data from CoinMarketCap suggests that cryptocurrency will continue with its bearish trend for the short term. The trading volume dropped by nearly 29.30%, followed by a 4.94% drop in market cap, which currently stands at $9.8 billion. The position of the token in the market is 21.

Chainlink price analysis via chart patterns

Chainlink price analysis on the chart below shows that the token broke out from an ascending channel mid-November as Bitcoin, the world’s biggest cryptocurrency, broke down from its all-time high. Moreover, the LINK/USDT pair is currently retesting an important resistance trend line which, if broken, will confirm that the downtrend is over.

Chainlink Price Analysis: LINK stuck in a downtrend, needs to break trendline to form an uptrend 1
Chainlink price analysis on the chart by TradingView

Chainlink price analysis via indicators

The MACD indicator shows that the MACD line is trying to break above the signal line and is very close to it. If the buying pressure increases, we might see a bullish divergence on the MACD indicator followed by high prices. The RSI indicator depicts that the prices will continue to fall for today as the gradient of the line is negative, hinting at an increased selling pressure for the token.

Chainlink price analysis
Chainlink price analysis on the chart by TradingView

Conclusion

The Chainlink price analysis can be concluded on a bearish note for the day, and higher prices don’t seem likely. As a result, we can expect the price action to drop down to the nearest support levels.

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Richard Adrian

Richard Adrian

Richard is a versatile fintech analyst with a deep understanding of blockchain domains. As much as technology fascinates him, he finds the intersection of both technology and finance mind-blowing. The firm belief that fintech will drive the future has brought him to the crossroads of Fintech discoveries and transmission of immutable data to a wider audience - Cryptopolitan.

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