- Chainlink price expected to observe sideways movement before bearish breakout.
- The closest support level at $20.00.
- LINK faces resistance in crossing above the $25.00 mark.
Chainlink price has once again failed in climbing above the $25.00 price level and fell back into the consolidating channel it has traded in for the past 12 days. Chainlink price finds it difficult to leave the current price level as the bearish pressure halts any movement above the $25.00 mark.
Similarly, the buyers have defended the support level multiple times and do not allow the price to break below the level. As such, Chainlink price has been forced to oscillate around the $22.50 mark, with the movements growing shorter and less volatile with the passage of time.
The broader cryptocurrency market observes a mixed sentiment as, other than Bitcoin and Ethereum, most major cryptocurrencies record a decline in price across the period. These include DOT and XRP that record an 8.99 and a 12.54 percent decline, respectively. On the other hand, Bitcoin and Ethereum record a 0.47 and a 1.73 percent increase, respectively.
Across the technical indicators, the MACD is bearish but shows declining bearish momentum as the price recovers to the $22.30 mark. The indicator will soon suggest a bullish reversal if the price continues trading above the $22.00 mark. Currently, the two EMAs are converging as the 12-EMA catches up to the 26-EMA.
The RSI has remained neutral since the 18th of January, as the price consolidates around the 22.50 mark. Currently, the RSI is hanging low and seemed to be moving further downwards before the price found support at $21.75. Since then, the indicator has inclined upwards and suggests bullish pressure at the price level.
The Bollinger bands are currently narrow and show further convergence as Chainlink price continues to trade near the indicator’s mean level. The upper limit of the indicator is moving downwards while the bottom line remains horizontal, suggesting an increasing bearish pressure on the price action.
Overall, the four-hour technical analysis issues a sell signal of reasonable strength, with 14 of the 26 major technical indicators supporting a downward price movement. On the other hand, only three indicators suggest a bullish price action. The remaining nine indicators are neutral and do not issue signals supporting either side.
The 24-hour technical analysis contradicts this sentiment suggesting confusion in the markets as 11 indicators suggest a positive price action. On the other hand, the analysis shows only five indicators in favor of a downwards movement. Meanwhile, 10 indicators remain neutral.
Traders should expect the Chainlink price to continue to oscillate around the $22.50 level for the next few days before the price breaks below the $20.00 mark. Traders can expect the price to fall to $17.50 before finding a strong support level to bounce back. Unless the LINK price falls below the $20.00 mark, a breakout from the current consolidation seems unlikely.
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.