- Chainlink price currently holds $12.00 support level
- Price action remains bearish suggesting further downward movement
- Price expected to fall to $11.70 support level
Chainlink (LINK) price is currently revisiting the support level at $11.67 as bears continue to dominate short and mid-term charts. While the buyers have attempted at an upwards rally, the increasing bearish pressure does not allow that to happen. The overall cryptocurrency market sentiment is the main reason behind the bearish pressure.
As Bitcoin declines towards the $18,000 mark, many altcoins are going to be affected by the sentiment.
Chainlink price opened at $12.63089 with bears dominating the charts throughout the day. The price has declined below the support level at $12.500 and has declined to support at $12.00. Currently, the price is trading at $12.05158 showing a 4.58 percent decline from the day’s opening price.
Chainlink price had a strong start to November as the price action was guided by the bulls. Initially the price moved downwards but the buyers found a strong foothold at the $10.00 level enabling the bulls to fight back.
As the price rose above, the bearish pressure increased causing the price action to stagnate around the $13.00 level. The bearish pressure caused the price to decline to the $12.00 support which enabled the bulls to replenish themselves and continue the bullish rally. The price eventually rose to $16.00, a level it has not seen since the start of September.
The trend then observed a complete reversal as the bulls were thoroughly exhausted. Chainlink price declined sharply to support level at $11.60. While the buyers did attempt at a V-shaped recovery, the attempt was crushed by the sharp bearish pressure causing the trend to capsize once again.
Since then, the price has continued to be dominated by the bears with the trend moving in a wavelike pattern. As shown in the above image, LINK price is moving inside a flat bottom triangle with key support at $11.70.
The RSI shows that there is still room for downwards movement as the indicator still remains neutral. However, the indicator hangs low suggesting that sharp bearish movement would enable the buyers to start a trend reversal. Currently, the MACD is bearish but suggests very little momentum as the tow EMAs move close together.
Overall, while the indicators remain bearish, the indicators show little potential in a bearish rally. Coupled with the positive market momentum, traders can expect Chainlink price to breakout above after consolidating for the next few days as the triangle reaches its climax.
Moving above strong resistance level lies at $13.50 and $14.00 respectively. Conversely, if the price experiences a downwards breakout, LINK USD price can be expected to crash towards the $10.00 level.
Chainlink has co-authored the World Economic Forum’s blockchain whitepaper titled “Bridging the Governance Gap: Interoperability for Blockchain and Legacy Systems” which argues in the favor of services like Chainlink. The whitepaper recommends using decentralized oracles that work across all blockchains to power DeFi protocols.
You can read the report here.
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