Chainlink price analysis: LINK recovers $6.00 but can the bulls hold on?

TL;DR Breakdown

• Chainlink price analysis suggests sideways movements at the $6.00 mark
• The closest support level lies at $5.90
• LINK faces resistance at the $6.10 mark

The Chainlink price analysis shows that the LINK price action has recovered to the $6.00 mark. However, the bearish pressure is yet to evaporate and the bulls are struggling to maintain the $6.00 support. 

The broader cryptocurrency market observed a bearish market sentiment over the last 24 hours as most major cryptocurrencies recorded negative price movements. Major players include DOGE and XRP, recording a 5.79 and a 1.79 percent decline, respectively.

Chainlink price analysis: LINK struggles at $6.00

The MACD is currently bullish, as expressed in the green colour of the histogram. However, the indicator shows low bullish momentum as observed in the low height of the histogram. On the other hand, the indicator’s darker shade suggests that the bullish momentum has started to increase as the price action climbs above the $6.00 mark. 

The EMAs are currently trading below the mean position as net price movement over the last ten days remains negative. However, the two EMAs are moving upwards suggesting a bullish correction in the markets. Moreover, as the two EMAs diverge, the bullish momentum increases in the markets as the selling activity dwindles. 

The RSI dipped briefly into the oversold region a few days ago but quickly resurfaced and continued to trade in the neutral zone till press time. Now, the index is trading at the 51.16 unit level with a horizontal gradient. The indicator does not issue a signal at the moment while the low slope suggests a lack of momentum on either side which hints at low volatility across the short term. 

The Bollinger Bands were expanding to facilitate the volatile movements but narrowed as the price stabilized at the $6..00 mark. Since then, the bands started to converge as the volatility died down in the struggle for dominance. At press time, the indicator’s bottom line provides support at $5.897 while the upper limit presents a resistance level at the $6.077 mark.

Technical analyses for LINK/USDT

Overall, the 4-hour Chainlink price analysis issues a strong sell signal, with 12 of the 26 major technical indicators supporting the bears. On the other hand, only five of the indicators support the bulls showing significant presence in recent hours. At the same time, nine indicators sit on the fence and support neither side of the market. 

The 24-hour Chainlink price analysis shares this sentiment and also issues a sell signal with 14 indicators suggesting a downward movement against only four of the indicators suggesting an upwards movement. The analysis shows bearish dominance across the mid-term charts while low buying pressure exists for the asset across the same timeframe. Meanwhile, eight indicators remain neutral and do not issue any signals at press time

What to expect from Chainlink price analysis?

The Chainlink price analysis shows that strong bearish momentum enabled the bears to cause a price drop to the $6.00 mark. However, the bulls found support at the level that enabled them to stabilize the price action. Regardless, the bearish pressure has yet to dissuade as LINK continues to face strong resistance in leaving the $6.00 mark

Traders should expect LINK to observe sideways movement between the $6.10 and the $5.90 mark as either side struggles to gain market control. While the mid-term analyses appear bearish, there is a shift across the short-term charts that favours the bulls. This shift makes it difficult for either side to initiate a breakout. If the bulls climb past $6.10, the next key resistance lies at the $6.40 mark leaving room for positive movements.