Chainlink price analysis: LINK rejected at $7.00, further downside expected

Chainlink price analysis

TL;DR Breakdown

  • Chainlink price analysis suggests a downward movement to $6.50
  • The closest support level lies at $6.80
  • LINK faces resistance at the $7.00 mark

The Chainlink price analysis shows that the price has been rejected at the $7.00 resistance level and has started to move downwards again.

The broader cryptocurrency market observed a mixed market sentiment over the last 24 hours as most major cryptocurrencies record mixed price movements. Major players include XRP and ICP, recording a 2.43 percent incline and a 1.71 percent decline, respectively.

Chainlink price analysis: LINK returns to $280

Technical indicator for LINK/USDT by Tradingview

The MACD is currently bullish, as expressed in the green color of the histogram. However, the indicator shows low bullish momentum, as observed in the indicator’s low height in recent hours. Moreover, the lighter shade of the histogram suggests a decreasing buying activity in the short term as the price action is rejected from the $7.00 resistance. 

The EMAs are currently trading close to the mean position as net price movement over the last ten days remains low. However, as the two EMAs turn downwards, the bearish activity is expected to increase, with the 12-EMA converging with the 26-EMA. Currently, the EMAs suggest increasing selling pressure as the price moves back toward the $6.80 mark. 

The RSI was trading in the oversold region a few days ago as the index dropped below the 30.00 index unit level. Since then, the indicator moved back up towards the overbought region but has now returned to the mean position at 51.08. On the other hand, the horizontal slope of the indicator suggests a struggle between the buyers and sellers for dominance.

The Bollinger Bands were diverging recently as the price broke above the $7.00 mark. However, as the price action was rejected at $7.092, the bands started to converge, suggesting increasing price stability at the price level. The indicator’s bottom line currently provides support at the $7.038 mark, while the upper line presents resistance at the $6.724 mark.

Technical analyses for LINK/USDT 

Overall, the 4-hour Chainlink price analysis issues a sell signal, with 11 of the 26 major technical indicators supporting the bears. On the other hand, only six of the indicators support the bulls showing a significant bullish presence in recent hours. At the same time, nine indicators sit on the fence and support neither side of the market. 

The 24-hour Chainlink price analysis accentuates this sentiment and also issues a sell signal, with 15 indicators suggesting a downward movement against only one indicator suggesting an upward movement. The analysis shows the bearish dominance across the mid-term charts while showing little buying pressure for the asset across the same timeframe. Meanwhile, ten indicators remain neutral and do not issue any signals at press time. 

What to expect from Chainlink price analysis?

4-hour price chart by Tradingview

The Chainlink price analysis shows that after rising above the$7.00 mark, the bulls were unable to continue further or maintain a support level at the level resulting in a crash below. Currently, the price has returned below the $6,960 mark, and the bearish pressure continues to rise.

Traders should expect LINK to continue to move downwards as the bears take over the markets. Currently, the price can be expected to crash to $6.50, where the next key support level lies. The suggestion is reinforced by the 4 and the 24-hour technical analyses. 

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Bilal Ahmed

Bilal Ahmed

Bilal Ahmed is a blockchain enthusiast and an avid reader who loves writing about ramifications of blockchain and cryptocurrencies. He believes in doing due diligence with facts before transmitting.

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