- LINK/USD trades around $21.5.
- Critical support at $20.
- Chainlink has lost 16 percent since the all-time high.
Chainlink price prediction today is bearish as the market continues to retrace towards $20 support after setting a new all-time high at $25.82
Cryptocurrency heat map by Coin360
The broader cryptocurrency market continues to decline as Bitcoin moves lower, pulling major altcoins – ETH, XRP, LTC, DOT ADA, and BNB along. The rest of the altcoin market follows the majors, just like it was seen yesterday.
So far, Chainlink has lost around 16 percent from the all-time high of $25.82 set on the 25th of January. Chainlink should see further downside today as it keeps moving towards the $20 price mark.
Additionally, the 61.8 percent Fibonacci retracement level is located nearby – at $20.36. The 61.8 percent level should offer additional support, and it could help Chainlink reverse to the upside.
As an additional confluence, the 100 period moving average blue line is closing in on the support level. Previously the 100 period moving average supported the price in a clear way on the 22nd of January as LINK/USD moved to test the $18 mark. Chainlink rejected further downside during the test of the moving average in a clear way.
Therefore, the analyst expects Chainlink to reverse around the previously mentioned support area of $20.
Chainlink has traded in a range from $21.37 to $23.26 over the last 24 hours. The price momentum has been negative as Chainlink has reached below the previous days close.
Chainlink price chart by TradingView
Overall, Chainlink has been a solid performer this month, with a new all-time high set at $25.82 earlier this week. Since then, Chainlink has started a several-day retracement that has led LINK/USD’s price towards the $21 mark.
The previous upswing resulted in a move of over 50 percent from the low of $17 on the 22nd of January. Therefore, Chainlink could see a similar move to the upside in the upcoming days.
From the previously mentioned support area of $20, this would imply a target of $30 for Chainlink`s next move to the upside. The $30 mark as a target also is reflected by the 50 percent Fibonacci extension. Therefore, Chainlink could offer a good long position entry opportunity in the coming 24 hours. When considering LINK`s price structure, a good risk/reward setup is almost ready.
Alternatively, if Chainlink moves below the previous swing low of $17 or does not show any signs of a slowdown around the $20 support area, the analyst expects a market reversal. The medium-term reversal could mean that the next major support around the $13 level is tested. However, this would cause panic for traders of Chainlink as the current market structure would be invalidated.
The Chainlink price prediction is bearish as Chainlink continues retracing from the all-time high of $25.82. A key area of support to watch right now is the $20 mark, which, together with the 61.8 percent Fibonacci retracement, could reverse Chainlink and offer a perfect long position trade setup.
Right now, traders should wait for a bit more downside. However, a long position right now could also offer a decent risk/reward ratio.
For further reading, see our latest news article on how Ripple has been sued with another class-action suit.
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