Chainlink price analysis: LINK consolidates above $5.50 and could break out past $8 resistance

Chainlink price analysis shows LINK price on the up and provides a bullish sentiment over the current trend. Price rose more than 8 percent during the day’s trade, rising from lows of $5.50 reached on May 12, 2022. After a series of bearish candlesticks posted over the past week, LINK is currently consolidating above $7.5 and could succeed the resistance and demand zone at $8. Trading volume over the past 24 hours dropped more than 12 percent, indicating that buyers are consolidating upwards along the current trend.

If price can hold above $8 resistance, a move up to the month-long high of $12 would be within reach. Conversely, support continues to sit at $5.50 and potential sell offs will pull LINK back to this point.

The larger cryptocurrency market continued to move upwards today, led by Bitcoin’s 3 percent uptrend to reach up to $30,000. Ethereum also rose 4 percent to consolidate above $2,000, while major Altcoins also showed significant increments upwards. Cardano soared 13 percent to reach up to $0.57, similar to Solana’s 11 percent move upwards to $54.62. Ripple made a 3 percent jump to reach as high as $0.42, while Dogecoin also recorded a 3 percent rise to move up to $0.09.

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Chainlink price analysis: Cryptocurrency heat map. Source: Coin360

Chainlink price analysis: 24-hour oversold RSI may provide difficulty in finding uptrend

On the 24-hour candlestick chart for Chainlink price analysis, price can be seen forming a steady incline upwards after a bearish week that took price as low as $5.53. Price rose as high as $7.68 in pursuit of the $8 resistance over the past 24 hours, and could consolidate beyond that point over the coming day’s trade. The crucial 50-day exponential moving average (EMA) remains in touching distance of the current trend at $8.10, and would provide as the next target for LINK price.

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Chainlink price analysis: 24-hour chart. Source: Trading View

However, the Relative Strength Index (RSI) continues to show low market valuation at an oversold value of 32.17 which is even trending downwards currently. The loss of trading volume over the past 24 hours provided some proof that traders may be holding on for now, but the RSI needs to climb up to indicate an upturn in price.In addition, the moving average convergence divergence (MACD) continues to attempt a bullish divergence by forming higher highs, but is yet to turnover above the neutral zone.

Over the next 24 hours, price can be predicted to breach the $8 resistance but profit taking action could soon be triggered afterwards and a jump up to $12 is unlikely over the current trend. Conversely, failure to meet the EMA at $8.10 would pull price back towards support at $5.50.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Source: https://www.cryptopolitan.com/chainlink-price-analysis-2022-05-15/