- Chainlink price is expected to fall to $40.00 before recovering.
- LINK faces resistance at the $44.00 mark.
- The closest support level lies at $40.00 and further below at $38.50.
After climbing to the $45.0 mark, Chainlink price failed to continue its bull rally, and the price has stagnated ever since. While the buyers defend the $40.00 support level, the bearish pressure prevents the price action from rising above the $44.00 mark.
The broader cryptocurrency market enjoys a bullish sentiment across the last seven days, with most major cryptocurrencies recording profits across the timeframe. Major players include Ripple’s XRP and BNB that record a 21.62 and a 13.35 percent increase, respectively. Meanwhile, Bitcoin and Ethereum record a 3.3 and a 13.94 percent hike, respectively.
Technical indicators for LINK/USDT
Across the technical indicators, the MACD exhibited a bearish reversal yesterday and has remained bearish since. As the price action stagnated, the MACD remained low as well, suggesting low bearish momentum in the markets. Currently, while both EMAs move downwards, the 12-EMA is separating from the 26-EMA showing an increasing bearish momentum at the time of writing.
The RSI is currently trading in the neutral zone a little below the 64.00 mark but does not issue a signal. While the RSI trades above the mean line showing a bullish presence, the recent hours have observed a downwards movement for the indicator suggesting an increased selling pressure.
The Bollinger bands are currently wide but show convergence as the price oscillates around the $42.00 mark. The price is currently returning to the mean point, suggesting further convergence. At press time, the indicator suggests a further drop in volatility for the Chainlink price.
Overall, the 4-hour technical analysis issues a buy signal with 14 of the total 26 major technical indicators suggesting their support for a bullish movement. On the other hand, only two indicators issue sell signals suggesting a bearish retracement. Meanwhile, 10 indicators sit on the fence, issuing no support for either side of the market.
The 24-hour technical analysis shares this sentiment and also issues a buy signal with 15 of the 26 indicators suggesting a bullish movement against only two indicators which suggest a bearish retracement. Meanwhile, nine indicators remain neutral and do not issue any signals at the time of writing.
Traders should expect Chainlink price to retest $40.00 support level before the price can recover. The technical analyses suggest that further downwards movement is unlikely, and the price may rise up to the $44.00 mark in the next few days.
Conversely, if the Chainlink price falls below the 40.00 mark, LINK would fall to the $38.50 mark before finding support. Further downwards movement would mean a fall to the $36.00 support level. While the bullish market sentiment makes that unlikely, the negative short-term indicators and the falling trade volume may result in a trend breakdown.
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