TL;DR Breakdown
- Chainlink price expected to climb to the $40 mark after a brief correction.
- LINK faces resistance in crossing the $35 mark.
- The closest support level lies at $32.5 and further below at $30.00.
Chainlink price rose to the $35.00 price level earlier in the day but failed to cross the level. Subsequently, LINK was rejected at the price level and declined to the $32.50 price level before stabilizing.
Since then, however, the price has recovered to the $34.00 price level where it currently hovers.
The broader cryptocurrency market observes significant bullish sentiment across the last seven days as most major cryptocurrencies record a sharp increase in their prices across the period. These include the king and queen of the crypto market – Bitcoin and Ethereum – both recording a 14.8 and a 6.4 percent increase respectively.
Some assets such as Polkadot, Cardano, and Binance Coin record profits ranging from 30 to over 100 percent across the same timeframe.
Technical indicators
Across the technical indicators, the MACD is bullish but shows declining bullish pressure, as shown by the light green histograms. Since the rejection at the $35.00 level, LINK has fallen to the $34.00 mark, and the two EMAS seem to be converging. While the 26-EMA continues rising, the 12 EMA has started declining, and the two EMAs would converge in the next few hours showing a bearish crossover.
The RSI is neutral since the rejection and is currently trading near the 50.00 mark. The indicator is currently horizontal, suggesting low pressure from either side. Furthermore, the indicator’s neutral position shows potential for sharp movement in either direction.
The Bollinger bands were expanding until recently as the price strayed from the indicator’s mean line. However, the recent rejection has caused LINK to return to the mean line. Subsequently, the indicator shows convergence suggesting a drop in Chainlink price volatility.
Overall, the four-hour technical analysis issues a buy signal of weak strength as 10 of the 26 major technical indicators suggest an upward price movement. On the other hand, the signal is weak as seven indicators oppose the notion and suggest a further drop in Chainlink price. Meanwhile, nine indicators sit on the fence and do not support either side.
The 24-hour technical analysis shows stronger bullish momentum with 14 indicators suggesting an increase across the timeframe against two indicators suggesting a bearish retracement. Similar to the 4-hour analysis, a large percentage of indicators do not issue signals supporting either side.
What to expect from Chainlink price?
Traders should expect the Chainlink price to fall to the $32.50 price level before recovering to test the $35.00 resistance once again. The supportive technical indicators and the relatively high trade volume suggest a bullish breakout from the level as the price heads towards the $40.00 mark.
Conversely, if Chainlink price falls below the $32.50 price level, LINK may fall to the $30.00 mark before finding support. Further downwards movement is highly unlikely given the bullish sentiment across the cryptocurrency market.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
