Chainlink (LINK) resumed its downward correction after bulls failed to keep it above the $19 high. On February 7, the bulls broke through resistance at $18 including the 21-day moving average line.
Buyers were unable to sustain bullish momentum above the recent high. However, the stubborn resistance at $19 forced Chainlink into the range bound zone between $14 and $18. Prior to the false breakout on February 7, the cryptocurrency fluctuated between $14 and $18 over the past two weeks. Today, Chainlink is falling and approaching the lower price range at $14. If the price of LINK falls and holds above the current support, the range-bound movement will resume. On the other hand, if the bears break the $14 support, the market will fall back to the $13 low and retreat.
Chainlink indicator reading
LINK/USD is at the level 38 of the Relative Strength Index for the period 14. The altcoin is in the downtrend zone, but approaching the oversold area of the market. The price of the cryptocurrency is below the moving averages. This indicates a further downward movement of the cryptocurrency. The altcoin is below the 20% range of the daily stochastic. Chainlink is also trading in the oversold region of the market. Selling pressure is likely to ease.
Technical indicators:
Major Resistance Levels – $55 and $60
Major Support Levels – $20 and $15
What is the next move for Chainlink?
Chainlink has been trading in a narrow range since January 22. Today, the bears pushed the altcoin back into the range bound zone. LINK/USD has reached the low of $15 in the range bound zone. The altcoin will develop when the range bound levels are broken.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.
Source: https://coinidol.com/chainlink-risks-selling-pressure/