Chainlink price analysis recently illustrates the market is in a downtrend as the prices have shed $9.77 percent in the last 24 hours. The buyers have failed to defend the key support of $7.0, which has led to a sell-off in the market.
The LINK/USD pair is currently trading at $6.5 after setting a 24-hour low at $6.3. The prices have bounced off the support and are currently attempting to form a base. However, the overall trend is still bearish as the prices have failed to break out of the descending triangle.
The immediate resistance is at $7.0, and a breakout of this level is required for the prices to resume the uptrend. Above this, the next level of resistance is at $7.5. On the downside, the support levels are at $6.5 and $6.0.
Chainlink price analysis: Technical analysis
Chainlink price analysis indicates the LINK/USD pair has been trading between a range of $7.52 and $6.70.The trading volume for the day is $340 million. The total market capitalization currently stands at $2.64 billion, with the LINK token accounting for a market share of 2.6 percent. The digital asset is currently ranking at position twelve in terms of overall market capitalization.
The Relative Strength Index or RSI is currently at 41 levels, which indicates that the prices are in the neutral zone and are not oversold or overbought. The MACD is also currently indicating a bearish trend as the signal line is above the histogram.
The Bollinger bands in the 1-day price chart indicate high market volatility as the prices have breached the upper and lower bands. The LINK/USD pair is currently trading below the moving averages which indicates a bearish trend in the market. The 50-day MA is at $7.1, while the 200-day MA is at $8.2.
LINK/USD analysis on a 4-hour timeframe: Bears in control
Chainlink price analysis on the 4-hour timeframe shows that the prices have been consolidating in a descending triangle pattern since the beginning of this week. The prices had formed higher highs at $9.8 and $9.2 and lower lows at $7.4 and $6.8. The breakout of the descending triangle pattern has led to a sell-off in the market as the prices have declined below the key support level of $7.0.
The immediate resistance is now at $7.2, and a breakout of this level is required for the prices to resume the uptrend. Above this, the next level of resistance is at $7.8. On the downside, the support levels are at $6.5 and $6.0.
The LINK/USD pair RSI index is currently at 36 levels, which indicates that the prices are in the oversold zone. The MACD line is significantly above the signal line, which indicates a bearish trend in the market. The Bollinger bands on the 4-hour timeframe are currently indicating high market volatility as the prices have breached the upper and lower bands.
Chainlink price analysis conclusion
Chainlink price analysis shows that the LINK/USD pair is currently in a downtrend as the prices have declined below the key support level of $7.0. The technical indicators are also indicating a bearish trend in the market as the prices have failed to break out of the descending triangle pattern.
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Source: https://www.cryptopolitan.com/chainlink-price-analysis-2022-05-19/