- Chainlink price prediction moves into the bearish zone as price moves lower
- LINK/USD is unable to cross above $13.00 and is set to close the day under $12.00
Chainlink (LINK) has delivered marvellous returns this year ever since moving past key resistance $10.00 resistance level. In 2020, it has become a leading altcoin at par with Ethereum and Ripple. However, the price action has been tracking the broader crypto market lately, and the same can be said about the current stagnation in Chainlink price prediction.
The crypto market has been unable to fully recover from the bearish correction that took hold of the crypto charts two weeks earlier. The November peaks now look higher. It would take serious action by the bulls to revisit those peaks once again before 2020 ends. At present, the Chainlink price is stuck in a range between $12.10 to $13.20 with consistent zig-zag action.
In recent history, the stagnation phase usually ended with a bull run since bulls used the period for accumulation. However, the current volume data does not support this narrative since the price has been repeatedly rejected from the upper Bollinger Band.
Sometimes, it is good to be rangebound, especially when facing a bearish Chainlink price prediction. Currently, Chainlink price prediction is fairly predictable since the pair is stuck in a tight range. But the overall sentiment is bearish. The hourly charts have lower highs, and the price is slipping towards the lower Bollinger Band as the descending price channel is putting pressure on the price movement.
With a market cap of $4.84 billion, LINK/USD needs some serious volumes to drive the price higher from $12.50 resistance. The uptrend line that began from $10.00 is now sloping downwards as 50-day simple moving average moves above the price. Despite some buying, the bulls have been unable to close the pair above $12.90 resistance.
If the price sustains below the uptrend line and the 20-day SMA, a bearish takeover of Chainlink price prediction is highly likely. The technical indicators are tilting towards bearish territory on the hourly charts. The daily uptrend is barely holding itself as the price nears lower descending channel for multiple days.
LINK/USD 4-hour chart – Red candles take over price action
The current LINK/USD hourly chart is painting an alarming picture with more red candles as compared to green candles. The RSI stands at 42 and is heading lower as we move towards day’s close. The bearish sign is also evident in MACD which is on the verge of a bearish cross over. If the bears can amplify their selling over the weekend, the Chainlink price can take a severe hit.
Technically, the ascending price channel threatens to target lower support levels. Sustained selling can take the price towards $9.75 and negate the daily uptrend line. Thin liquidity on the weekend may very well turn Chainlink price prediction utterly bearish.
On the other hand, the opposing view will be over if the price is pushed above the 20-day EMA over the next two days. The bulls will have to gather maximum volumes at initial support levels. The $11.80 level will be the first pivot point to observe any buying activity. The price has to break above the simple and exponential moving averages on the hourly charts to signal any bullish intent.
The current corrective phase in the crypto market has seen every major altcoin come down from peaks. Close to 12 per cent of the gains have been wiped out from Chainlink price. The last seven days have seen most cryptocurrencies move in a small range. This has undoubtedly helped cool down overbought technical indicators on both daily and hourly charts.
Nonetheless, there’s still hope that a bullish wave will begin once this consolidation wave is over. A rebound will happen only if the current phase is used as an opportunity to accumulate as has been observed in the recent past. As MACD remains marginally positive, the pair can stage a rebound once initial resistance at $13 and $13.8 is cleared. The next resistance at $15 won’t be hard to cross since technical indicators would align towards bulls if such a move comes courtesy of heavy volume.
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