Chainlink price prediction: LINK still holds around $21.5

TL;DR Breakdown

•  LINK/USD has continued to move sideways for the past 24 hours.
•  Link still trades close to the yearly high around $21.5.
•  Strong support at $18.

Chainlink price prediction for today is neutral. Link continues to trade sideways after a small impulse to the upside set a new yearly high at $24.

LINK currently trades around $21.5, with a market cap of $8.7 billion. 

Cryptocurrency heat map by Coin360

Chainlink Price Prediction: LINK should reverse this week

Chainlink opened at $22.05 today as the price continues to consolidate in a slow retracement.

After setting a new yearly high of $24, the price experienced a minor retracement. Local support at $21 currently prevents LINK/USD from moving lower.

The analyst believes there will be another attempt to move higher. Considering the market extension by more than 80% from the low of $13, we should see a much deeper retracement during the remaining month. 

Potentially, LINK could form a head and shoulder pattern from the highs seen on the 16th and 18th of January.

Chainlink price movement in the last 24 hours

During the past 24 hours, Chainlink has consolidated around the $21 to $22.5 area. This likely indicates that the market is preparing for the next impulse. LINK has lost 2.5 percent, with a volume of $3.2 billion. This move is tiny compared to what we saw earlier this month. 

Therefore, the analyst sees greater volatility in the upcoming 24 hours.

Chainlink price chart by TradingView

LINK/USD 4-hour chart – Chainlink preparing for a reversal?

As initially mentioned, Chainlink has reached an exhausted point, and a reversal is needed.

The target to watch for is a strong area of support around $18. LINK previously respected this area on the 7th and 10th of January as a resistance. Therefore, the analyst believes it will act as support once a deeper retracement begins.

Chainlink has also established a several week ascending trendline. The trend line was respected several and could potentially support LINK/USD once again. Considering the current market structure, a retest of this trend line could be around the start of February. 

If LINK/USD can show clear signs of respect around the $18 support level and the several week ascending trendline, LINK would form a very strong buy signal.

Additionally, the 100 period moving average blue line has offered support several times during the past month. Currently, the average is moving towards the same $18 area. Therefore, additional support confluence can further strengthen the price.

For Chainlink, a clear trade opportunity is not seen right now as a reversal is expected back to the downside. A short position would not be advisable as it would mean to place a trade against a very strong bullish momentum.

However, if LINK makes a clear rejection for further upside around the previous high of $24, a short position could be made towards the $18 area.

Chainlink Price Prediction: conclusion – further price action needed

Therefore, the Chainlink price prediction is still neutral as a strong retracement is needed.

If Chainlink starts to reverse in the upcoming weeks, a very good entry opportunity around the end of this month or at the beginning of February could be seen. As described before, both the $18 level and ascending trendline should provide a lot of support and offer traders a very good setup for a further move to the upside. 

Based on the current market momentum, the next major upswing could lead towards the $30 level. However, a more precise prediction will only be possible once LINK retraces to the downside and finds support. 

For the upcoming days, Chainlink should show further downside. A short position could be made. However, it would mean to trade against a very strong overall trend.

Additionally, check out our Chainlink price index section as it offers a real-time chart, price details, sentiment analysis, and signals.

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.