ChainLink is currently hovering near the March lows after receiving a rejection from the $6.65 level in May. The bullish rally for Link price began in March when the price started to rise from the support level of $6.15.
This move caused a rise of roughly 49% and led to the creation of an annual high of $8.798. The rejection from the $8.798 level triggered a drop in the price. Link price gained bearish momentum and did a zone-to-zone breakout to reach the current level.
Recently, the price shattered the support level of $6.27 and formed a support at $6 level. For Link price to re enter back into the consolidation zone, the current candle needs to break the upper wick of previous candle and close above $6.27. Link price needs to rise above $7.23 and gain bullish momentum for a potential retracement toward the annual high.
While on the other hand, if bears can wreck the support of $6 level, there is high probability for the price to head toward the immediate support of $5.60 level.
ChainLink Partners With Swift and 12 Other Banks For BlockChain Testing
Chain Link announced that it is working with Swift, a global financial messaging giant, and 12 other major financial institutions on an experiment to enable connectivity and interoperability across public and price blockchain.
Swift stated that the experiment was borne out of its quest to explore a potential solution to the challenge of blockchain interoperability, which creates significant overhead and friction in managing and trading assets on them.
Will Link Price Decline to Yearly Lows?
Link price trades below all the major EMAs indicating bearish momentum in the price. The chaikin money flow score is still above the 0 mark and is currently at 0.05 suggesting that bullish strength is still left in the Link price. RSI trades at 40.82 indicating rising bearish pressure over the price.
The previous candle almost touched the 30 mark of RSI. The previous candle crossed the lower band of bollinger but received rejection from $6 level which led to short term pullback in the price. There is a possibility that Link price might retest the 20-day SMA of bollinger. The long/short ratio is 0.86 with 46.45% longs and 53.55% shorts in the last 24 hours indicating a bearish pressure over the price.
Conclusion
The market structure and price action of ChainLink is currently bearish. For the comeback of bulls, it needs to rise above $7.23 level. Bulls need to protect the $6 level, as break of it would push price to yearly lows. The technical parameters are favoring the selling side.
Technical levels
Major support: $6 and $5.60
Major resistance: $6.50 and $7.23
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/06/07/chainlink-price-prediction-link-price-headed-toward-yearly-lows/