Chainlink price analysis: LINK fails rally towards $33 but could still move upwards

TL;DR Breakdown

  • Chainlink price lowered 8 percent on the day to move as low as $24.05
  • Price retraced after opening at $26.70 following a positive week
  • A return to $20 back on the horizon if price continues to fall

Chainlink price analysis for the day shows the token facing a hefty retracement following positive movement towards $30 resistance earlier in the week. Price lowered more than 8 percent over 24 hours to move as low as $24.05 with trading volume also falling 18 percent. Before today, LINK was tipped to ascend as high as $33 but hefty resistance around $28.68 took price back downward. Nonetheless, LINK price maintains a bullish shakeout pattern on the $0.50/3-box reversal Point and Figure chart which indicates that there is still momentum to move upwards in the token.

The larger cryptocurrency market consolidated with minor increments. Bitcoin increased up to $43,270, with Ethereum rising up to $3,314 with a 2 percent rise. Among Altcoins, Cardano rose 2.5 percent to $1.28 with Ripple consolidating at $0.77. The biggest leaps were recorded with Dogecoin and Litecoin, with the former rising 13 percent and the latter 6 percent over 24 hours.

Chainlink price analysis: LINK fails rally towards $33 but could still move upwards 1
Chainlink price analysis: Cryptocurrency heat map. Source: Coin360

LINK/USD 24-hour chart: Price poised to go either way at current trend

The 24-hour candlestick chart for Chainlink price analysis shows formation of a Bullish Hammer pattern over the day’s trade, but also indicates price receding downwards. After starting trade above the 25-day exponential moving average (EMA) at $25.76 and with potential to launch a move towards $33, price reduced as low as $24.05 with trading volume lowering over 18 percent. However, the current relative strength index (RSI) value of 55.89 shows healthy market valuation for LINK along with the moving average convergence divergence (MACD) curve that sits just above the neutral zone. From here, price can potentially launch upwards if it can sustain past the 50 percent Fibonacci retracement at $25.

Chainlink price analysis: LINK fails rally towards $33 but could still move upwards 2
Chainlink price analysis: 24-hour chart. Source: Trading View

LINK/USD 4-hour chart: Buying expected to dominate trend till $26

The 4-hour chart for the LINK/USD trade pair suggests that price is likely to move upwards over the upcoming short-term trade. In a hypothetical trade setup for LINK, buy stop orders can be set up around $26 with stop loss set at $24.50. Profit targets could still be set at the previous target of $33. The 4-hour RSI value of 48.73 indicates considerable market valuation to suggest price could still achieve the target. However, if LINK price fails to stay above the $25 level the bullish thesis could be invalidated with bottoms ranging from $23.50-$20 in line as next support points.

Chainlink price analysis: LINK fails rally towards $33 but could still move upwards 3
Chainlink price analysis: 4-hour chart. Source: Trading View

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