- Chainlink price analysis suggests a fall to the $6.500 mark
- The closest support level lies at $7.00
- LINK faces resistance at the $8.00 mark.
The broader cryptocurrency market has observed a bearish market sentiment over the last 24-hours as most major cryptocurrencies record negative price movements. Major players include KSM and CELO with an 8.19 and an 8.34 percent decline respectively.
Across the technical indicators, the MACD is currently bullish across the 4-hour chart as expressed by the green color of the histogram. Currently, the bulls seem to be exhausted as the indicator shows a lighter shade of the histogram suggesting a declining bearish momentum. If the price continues declining and falls below the $6.50 mark, the MACD would observe a bearish crossover.
The EMAs are currently trading close to the mean line as the bullish recovery shows a return of market momentum towards the bulls. However, the EMAs are still trading below the mean line as net activity over the past few days remains negative. Currently, the 12-EMA is moving downwards while the 26-EMA continues rising suggesting a bearish crossover may occur across the short-term charts.
The RSI was trading in the neutral since May 13 and rising as the bulls recovered from the lows of $5.53 and rose towards the $8.00 resistance level. Currently, the indicator trades at 45.69 showing slight bearish pressure with room for movements in either direction. On the other hand, the current downwards slop suggests a drop in LINK price across the short term.
The Bollinger Bands were wide for the past few days but now show rapid convergence as the price action returns to the $7.20 mark. At press time, the indicator suggests declining price volatility while its lower limit provides support to the bulls at the $6.67 mark. Meanwhile, the mean limit presents resistance at the $7.88 price level.
Technical analysis for LINK/USDT
Overall, the 4-hour Chainlink price analysis issues a sell signal, with 15 of the 26 major technical indicators showing support to the bears across the timeframe. On the other hand, only four of the indicators support the bulls, showing a significant bullish presence in recent hours. Meanwhile, the remaining seven indicators sit on the fence and do not issue any signals at press time.
The 24-hour Chainlink price analysis shares this sentiment and issues a strong sell signal with 12 major technical indicators suggesting movement downwards against zero indicators suggesting an upwards movement. The analysis reinforces the bearish dominance while showing little to no bullish pressure across the mid-term charts. At the same time, nine indicators remain neutral and do not support either side of the market.
The Chainlink price analysis shows that the bulls are now showing signs of exhaustion with the recent rejection at the $8.00 mark. This is dangerous in the current period as the wider cryptocurrency market is observing a crypto winter which may cause LINK to observe a sharp downturn at the current level.
Currently, traders should expect the Chainlink price to move downwards towards the $7.00 support level as the momentum turns bearish. If the bulls are unable to defend the level, then the next support level lies at the $6.00 mark. The technical analyses are highly bearish suggesting a downwards breakdown to the $6.500 support level before the bulls can gather momentum.