As the price breaks below the moving averages, Chainlink (LINK) remains in a bearish correction.
The cryptocurrency plunged to a new low of $15 yesterday, the level it touched during the market crash on January 22. The present support is the market’s oversold area. The bulls have been unable to sustain the price above the moving averages since January 22.
The return of the uptrend would be signalled by a break above the moving averages. The bulls, however, broke past the 21-line moving average on February 7, but were denied at the $19 high. Chainlink will resume bullish momentum if price breaks past $19 resistance and bullish momentum persists. As investors draw back for an upside move, LINK is stabilising above $15 support today.
The reading of the chainlink indicator
For period 14, the Relative Strength Index for LINK/USD stands at 40. Chainlink is currently in a downtrend and is trading below the 50 centre line, indicating that it is vulnerable to more losses. The altcoin is trading below the daily stochastic’s 20% range. This indicates that Chainlink is trading in the market’s oversold zone. This location will draw buyers, driving cryptocurrency prices upward.
Major Resistance Levels – $55 and $60 (technical indications)
Levels of Major Support – $20 and $15
What will Chainlink’s next move be?
After rejecting the peak at $19, Chainlink is on a slump. Meanwhile, a candlestick body on the decline from February 8 is testing the 50% Fibonacci retracement level. According to the retracement, LINK will drop to the 2.0 Fibonacci extension level, or $16.09. Chainlink has fallen above the Fibonacci extension, but has found support above $15, according to the price action.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.