- Downward correction towards the 61.8% FIB retracement level at $23.22
- At the time of writing, Chainlink is trading at $23.08.
Chainlink (LINK) relative strength index has been hovering within the neutral zone for the last 3 days indicating no considerable shift in momentum. A long candlestick extended over the 1-hour chart above the 50-day simple moving average before the bears suppressed the uptrend into below the middle Bollinger band. The hope of breaking out of the neutral zone relies on the buyers’ ability to overcome the 200-day simple moving average.
During press time, the coin is retracing a downward correction towards the 61.8% FIB retracement level at $23.22. The overall sentiment of the LINK market is neutral, Bitcoin corrected lower by 3.22 percent while Ethereum lost 5.69 percent. Most altcoins followed the reversal by shedding at least 5 percent.
The bulls are waiting positive signals that will see the price of LINK rise above the current resistance at $25 , this will welcome a corrective process towards last week’s close of $26. This will give buyers more confidence to invest in the coin and catalyze the next leg towards $30.
LINK/USD pair opened the daily trading chart at $23.06 following a bearish correction from the upper bollinger band. The bulls have not shown any significant momentum in reversing the downtrend but are trying their best to hold the price together and defend the $22 support. Meanwhile, the coin has been trading within a tight range with a difference of 1.5 points , suggesting little seller/buyer activity.
The midweek pattern is a reflection of the struggle between the bulls and bears, with the bears attempting to execute a pullback and bring the $20 price mark into play. On the other hand, the bulls are pushing harder to beat a price hurdle at $25. While there are little chances of a bullish trend, the coin is likely to undergo more volatility as indicated by the expanding bollinger bands on the 1-hour chart.
Relative strength index has subsided from levels above 50 to the overbought region and is lying towards 29 , suggesting the possibility of new sellers. This could invalidate any positive momentum that is expected to push to a break out above $24. At the time of writing, Chainlink is trading at $23.08. Dip investors were interested in the bottom correction below the 200-day SMA, which is a point of interest as it marks the demand zone. Besides, it also served as the main support during May’s correction from the monthly high at $52 to the month’s low of $15. This stired the manic into panic mode and thereby led to increased seller volumes.
Chainlink has been hovering within the $22 support for several days without either of the bulls or bears taking control. There is no telling where the price could go, as 10 of the 26 major indicators have remained neutral on the 2-day chart.
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