The Chainlink price has been struggling to maintain its position above a key support level, leading to uncertainty among altcoins in response to market sentiment. However, both Bitcoin and LINK saw slight gains in the past 24 hours.
LINK experienced a 1.5% increase, with its weekly chart indicating a period of consolidation. The technical outlook for LINK appears to favor the bulls, as demand and accumulation show increased buying strength.
It is important to note, however, that this bullish sentiment is limited to the shorter time frame, as the higher time frame suggests a bearish sentiment.
If Bitcoin retraces below $30,500, LINK is expected to drop below its local support level, which would invalidate the bullishness. Surpassing overhead resistance is crucial for LINK, as the increasing market capitalization indicates the control of buyers.
Chainlink Price Analysis: One-Day Chart
The current trading price for LINK is $6.26, remaining below the strong resistance level of $6.50. This particular level acts as an overhead ceiling for the altcoin.
Despite breaking out of the bearish trendline (green), LINK has struggled to overcome immediate resistance and remains bearish on the higher time frame.
The rejection at $6.50 has resulted in selling pressure, which could resume if LINK fails to move above immediate resistance. A price drop from the current level would push the coin below $6, nearing $5.80.
There has been an increase in demand for LINK as the price moved from the $6 level. However, if price action stalls again, sellers are expected to regain control.
The Relative Strength Index (RSI) has moved away from the 50-mark, indicating an increase in buyers. Additionally, the price is currently above the 20-Simple Moving Average (SMA) line, suggesting that buyers are driving the momentum.
As demand for LINK increases, investor confidence also grows. The Chaikin Money Flow indicates that capital inflows are greater than outflows, as it remains above the half-line.
On the other hand, the Moving Average Convergence Divergence (MACD) reflects price momentum and reversals. However, the indicator has formed red histograms on the half-line, signaling the potential for bearish action and sell signals for the altcoin.
Breaking past the $6.50 resistance level is crucial for LINK to avoid giving full control to the bears.
Featured image from UnSplash, charts from TradingView.com
The Chainlink price has been struggling to maintain its position above a key support level, leading to uncertainty among altcoins. While demand and accumulation indicate increased buying strength, the higher time frame suggests a bearish sentiment. Bitcoin’s movement will be crucial for LINK’s price stability, as breaking below the local support level would invalidate the bullishness. Technical analysis shows that LINK is facing selling pressure at the $6.50 resistance level, while indicators such as the Relative Strength Index and the Chaikin Money Flow suggest mixed sentiments. LINK needs to break past the resistance level to avoid a bearish scenario.
1. What is Chainlink?
Chainlink is a decentralized oracle network that enables smart contracts on the blockchain to interact with real-world data.
2. What is the support level for Chainlink?
The current support level for Chainlink is below $6, with a critical level at $5.80.
3. What is the resistance level for Chainlink?
The resistance level for Chainlink is at $6.50, which has caused selling pressure and a potential bearish scenario for the altcoin.
4. How does the Relative Strength Index (RSI) indicate market sentiment?
The RSI is a momentum oscillator that measures the strength and speed of price movements. When it moves away from the 50-mark, it suggests an increase in buying or selling pressure. In this case, an increase in buyers is indicated.
5. What is the Chaikin Money Flow?
The Chaikin Money Flow is an indicator that measures the flow of money into or out of a particular asset. When it is above the half-line, it suggests capital inflows are higher than outflows, indicating investor confidence.