- Chainlink price indicates a Strong buy signal since the bulls are hoping to overcome the $32.5 and $35 resistances.
- Chainlink was announced as the next coin to join Grayscale’s large cap fund
- Chainlink will replace XRP after its expulsion from the fund
Towards the end of yesterday, Chainlink exhibited a bullish trend line from $30.12 to $31.89 before facing a bearish reversal in the early hours of today’s trading chart. The bears prevented the coin from holding support near $40 and corrected downwards to $31.08.
The good thing is the bearish momentum shrank significantly, and the 50 -Simple moving average is heading for an uptrend with support at $14.65.While the overall chart over the past five days is generally bearish, there are signs of a bullish recovery that might have the price floating above $32 for the better part of the week.
The stochastic RSI is trending at 29 on the daily chart, which is neither overbought nor oversold. Chainlink started at an uptrend when StocRSI was at 22. The indicator suggests the asset’s price is likely to continue rising in the short term until it reaches the oversold zone.
Chainlink (LINK) price is also trading near the lower Bollinger band. Signs exist of convergence on the 4-hour trading chart, with the coin’s price showing slight upward adjustments that might cross above the middle band. This trendline suggests compact price volatility for the next few hours.
It appears both bulls and bears are working round the clock to defend their interests. During press time, the Relative Strength Index (RSI) indicates a green light for the bulls to keep buying. But across to the other side of the $33 price, resistance will be in the interest of the sellers, who might end up pulling the price below $30.
At the time of writing this technical analysis, Chainlink is trading at $32.25 and has formed an ascending channel that began at $31.4 on the 4-hour trading chart. The daily low is $31.07, and the daily high is $32.48. On the 24-hour chart, the daily percentage is a negative 2.89%.
Generally, the short-term trend lines suggest a strong buy signal since the bulls hope to overcome the $32.5 resistance and the $35 key resistance. A prime factor for this expectation is a reasonable RSI which exhibits an upward price momentum. Only a few indicators showing a redlight and the possibility of a bearish reversal are pretty low. There is a solid support base at $33, and the best way for the bulls to float above this price zone is by breaking the current resistance at $32.5.
Besides, the bulls are happy to have consolidated massive trading volumes, which indicates mass buying potential. As well as the possibility of a sharp momentum to $35.
We cannot expect any downsides for the long term despite the bears trying their best to retest $28 and $26. Hopefully, the bulls are going to consolidate enough buying power and prevent rejection at $32.5. A situation that could have Chainlink’s price reverse to $30.
In the wake of XRP‘s expulsion from Grayscale’s digital large cap fund, Chainlink was announced as the next coin to fill the space left behind. This means the popular fund will increase the demand for Chainlink and therefore increase its price. Thus creating a bullish sentiment for LINK and a positive outlook for the long-term future of the coin.
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