Chainlink Consolidates Above $22 Support, Upward Move Likely
On May 19, LINK price plunged to $21 low and pulled back. However, the selling pressure resumed as the market slumped to $22.50. Since May 10, LINK price has been making a series of lower highs and lower lows.
Each time, LINK makes a lower high, the altcoin will further decline to the previous low. On May 20, the altcoin made a lower high to $32 and it fell to a lower low to $22. In the lower time frame, buyers have retested the lower highs on the three occasions while sellers have revisited the lower lows on four occasions.
This implies that Chainlink is range-bound between the current price range. The altcoin will trend once these levels are breached. On the upside, if buyers breach the $32 resistance, LINK price will rise and retest the next resistance at $44. Incidentally, if buyers are successful above $44, Chainklink will be out of downward correction. Perhaps, the upside momentum will resume. On the other hand, if LINK/USD turns from the $32 high; the market will continue the downward correction.
Chainlink indicator reading
LINK price has broken below the moving averages. It indicates that the altcoin is in the bearish trend zone and capable of falling on the downside. LINK price is at level 36 of the Relative Strength Index period 14. It indicates that the market is approaching the oversold region. LINK is below the 30% range of the daily stochastic. It indicates that the coin is in a bearish momentum.
Technical Indicators
Key Resistance Zones: $48, $50, $52
Key Support Zones: $20, $18, $16
What is the next move for Chainlink?
Chainlink has been falling on the downside but it is now consolidating above $22 support. The Fibonacci tool has indicated the extent of the downward move. On May 10 downtrend; a retraced candle body tested the 32.8% Fibonacci retracement level. This retracement indicates that the market will fall to level 2.618 Fibonacci extensions. That is the low of $21.10. From the price action, Chainlink has fallen and tested the 2.618 Fibonacci extension.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.
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