Due to a huge correction in the last two weeks, LINK price lost around 50% in value. The LINK/USD pair has dropped to the crucial support of $13.5 looking for sufficient demand. The coin chart shows several lower price rejection candles at the bottom support registering a 20% gain in the last six days. If the buyers could sustain this momentum, the coin could enter a recovery phase above $16.75.
Key technical points:
- LINK token technical chart shows a bearish crossover of the 100-and-200-day SMA
- The intraday trading volume in the LINK token is $791.5 Billion, indicating a 9.31% fall.
Source- Tradingview
In our last coverage of Chainlink technical analysis, Coingape warned about a further drop in LINK/USD pair as this coin sinks below the $20 floor. Under the influence of the crypto bloodbath, the seller engulfed another floor support of $16.75 and dropped the coin to yearly support of $13.57.
- The LINK price has been discounted by 50% from the previous swing high of $28.5. The token buyers show strong interest in the current market value($16.28), displaying long lower price rejection in the technical chart.
- The daily-Relative Strength index(34) recovered from the oversold region challenges the 14-SMA line. However, more buying pressure would be required for successful crossover above the midline.
- This recent sell-off has triggered a bearish crossover of the 100 and 200 SMA, encouraging the seller to continue the bear attack.
Recovery Rally Needs $16.75 Breakout
Source-Tradingview
This week the LINK price action showed a whipsaw movement between the $16.75 and $13.57. Such minor consolidation avails a recovery opportunity for buyers once the coin pump above the overhead resistance.
However, the downside risks are substantial as a shift sell-off could violate the bottom support of $13.57, leading to further downsizing.
Bollinger band indicator moving sideways completely engulfs this week’s price action. The token price moving higher to the middle line aims to retest the $16.75 resistance.
- Resistance levels- $16.75, $21
- Support levels are $13.57 and $11.5.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Source: https://coingape.com/markets/chainlink-price-analysis-link-bulls-defended-13-5-support-is-this-bear-market-bottom/