- Chainlink price down 4 percent on the day to move below $20.27
- Trading volume dipped 15 percent to paint bearish outlook
- Price does however present buying opportunity before launching towards $30
Chainlink price analysis for the day shows a bearish picture, as price moved below the crucial 25 and 50-day exponential moving averages (EMAs) to a low of $19.72. Trading volume also dipped more than 15 percent, as LINK gave up on the 41 percent increment made from the December 15 swing low. Price currently sits at $20.29, providing a discounted entry for buyers to come into the market. The current outlook for LINK presents a long setup for a buy stop order at $22.50 and a profit target at $35 with a stop loss at $20.50. This trade setup would aim to provide a 6:5:1 reward.
The larger cryptocurrency market continued to bleed over the last 24 hours, with Bitcoin dropping down to $47,630 and Ethereum dropping almost 2 percent to sit at $3,763. Among Altcoins, Solana, Ripple and Cardano all declined 3 percent each, while Terra, Dogecoin and Litecoin made minor increments.
LINK/USD 24-hour chart: Pole pattern suggests hypothetical upturn from current dip
The 24-hour chart for Chainlink price analysis shows a pole pattern, that indicates a potential subsequent rise from the current trend. The Relative Strength Index (RSI) value of 45.23 also shows some encouragement in terms of market valuation, if LINK can garner more impetus over the coming days. Having moved below the crucial EMAs, LINK price has just moved into the lower half of the Bollinger Bands’ curves, suggesting that there is further pullback to come.
LINK/USD 4-hour chart: Price set to test $18 support
On the 4-hour chart for the LINK/USD trade pair, price can be seen in free fall after the day’s decline and could be in line to drop as low as $18 over the coming short-term trade. The 4-hour RSI shows a bleak market valuation of 36.64, while the Moving Average Convergence Divergence (MACD) curve also sits well below its neutral zone and the 0.00 mark. These indicators confirm that LINK is set to test the support floor at $18 and could well be in line to move down to July high of $16.74.
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