- Chainlink price expected to make a V-shaped recovery.
- LINK faces resistance in crossing the $28 mark.
- The closest support level lies at $26 and further below at $24.
Chainlink price has finally found support at the $24.00 mark after appearing to be in freefall from being rejected at the $36 mark.
Chainlink price enjoyed a strong bull run for most of 2021 as wave-like bullish activity caused the price to rise from the $12.00 mark to the recent highs of $36.00. Chainlink price faced strong resistance at the $36 mark, which it could not break through and ended up being rejected from the level. The rejection caused the price to fall to the $21.50 mark before the price bounced back to the $24 support level.
Since then, Chainlink price action has attempted to make a recovery to the $30 mark but faces resistance at the $28 price level.
Technical indicators for LINK/USDT
Across the technical indicators, the MACD is highly bearish, as indicated by the large red histogram. However, as price finds support at the $24 level, the indicator suggests a declining bearish momentum and a rising bullish pressure indicated by the light red histogram. The two EMAs are converging as the 12-EMA rises at a sharp slope to meet the 26-EMA
The RSI dipped into the oversold region momentarily but has since moved back into the neutral zone. The indicator is currently trading above 40.00, showing further upwards movement as the price recovers to the $28.00 mark.
The Bollinger Bands are currently wide but now show convergence in the downwards direction as the price recovers towards the $30.00 mark. While the indicator currently suggests high volatility for LINK, the volatility will be reduced significantly once LINK touches $30.
Overall, the 4-hour technical analysis issues a sell signal. However, the strength of the signal is very low as only nine out of the 26 major technical indicators suggest a downwards movement. On the other hand, seven indicators show support for a bullish recovery while 10 remain neutral. The hourly analysis suggests a bullish crossover as the hourly frames show strong bullish momentum.
The 24-hour technical analysis also contradicts this sentiment and issues a buy signal with eleven indicators suggesting an upwards price movement against six suggesting a further breakdown. Meanwhile, nine indicators are sitting on the fence and do not issue signals supporting either side.
Traders should expect Chainlink price to make a V-shaped recovery to the $32.00 mark. However, the resistances at the $28 and the $30 mark need to be overcome before the price can achieve that. The technical indicators show a mixed sentiment suggesting confusion in the markets. However, the overall market sentiment is bullish as Bitcoin recovers to the $50,000 level.
Conversely, if the price falls to $24.00 support once again, LINK may break down further, falling to the $20 level. In that situation, the FUD (fear, uncertainty, and doubt) may cause the price to fall to the $18 mark, erasing most of February’s gains.
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