- Chainlink price is expected to fall below $50
- The closest support level lies at $50
- LINK faces resistance at the $52 mark.
Chainlink price has finally broken above the $45 mark, and strong bullish momentum has carried the price to go past the $51.00 mark. LINK records an over 30 percent price hike across the last seven days showing strong bullish dominance. However, this sharp bullish activity leaves room for volatile movement for the Chainlink price.
The broader cryptocurrency market enjoys a bullish sentiment across the last 24 hours, with most major cryptocurrencies recording profits across the timeframe. Major players include Ripple’s XRP and BNB that record a 3.91 and a 2.5percent increase, respectively. Meanwhile, Bitcoin and Ethereum record a 0.13 and a 4.12 percent hike.
Technical indicators for LINK/USDT
Across the technical indicators, the MACD shows a declining bullish momentum. While the histogram is still green at the time of writing, the histogram’s size has decreased significantly as the price has started to struggle just below the 1.50 mark. While the 12-EMA still trades above the 26-EMA, the difference between the two is negligible, and they may show a reversal at any time.
The RSI is currently trading in the neutral zone a little below the 60.00 mark and does not issue a signal. The indicator has been trading in the neutral zone for the past five days. At press time, the RSI has had a small spike towards the oversold region, suggesting an increasing bearish presence at the current price level.
The Bollinger bands are currently wide but are converging rapidly as the bears take charge of the market momentum. The bands’ convergence suggests a drop in volatility for the Polkadot price in the short term. However, as the price is consolidating above the bands’ mean line much closer to the upper limit, the price will be leaning upwards for the next few candlesticks.
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, ten 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 14 of the 26 indicators suggesting a bullish movement against only four indicators suggest a bearish retracement. Meanwhile, eight indicators remain neutral and do not issue any signals at the time of writing.
Chainlink price is at the $52.00 resistance level; however, the short-term indicators show feeble bullish momentum, making an upwards breakthrough unlikely. As such, Chainlink price should be expected to fall down towards the $50.00 mark as the price action consolidates at the level. Further downwards movement may mean a fall to the $48.00 mark.
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