Chainlink was bearish on its chart at the time of writing. Over the past week, the coin has seen a significant drop on its chart. Despite the 2% appreciation overnight, Chainlink’s technical outlook remained negative. Falling market mover prices have caused many altcoins to travel south on their charts.
Before that, LINK was consolidating between $6.70 and $7.00 respectively. A drop in the price of LINK took it below the $6.70 mark. The technical outlook has started to reflect a change in price direction as buying strength has increased slightly in the market.
Despite the change in the technical outlook, LINK was still hovering in bearish territory. At present, the price movement of the altcoin cannot be called an invalidation of the bearish thesis. For LINK to defeat the bears, the coin must be above the $8.00 mark.
Along with this, the buying force should remain constantly positive, a drop that will take the coin below the $6.00 support level. The global cryptocurrency market capitalization today is $1.03 trillion with a 1.5% positive change in the last 24 hours.
Chainlink Price Analysis: Four-Hour Chart
LINK was trading at $6.58 at the time of writing. Prior to its chart drop, the coin’s price was between $6.70 and $7.00 respectively.
Immediate resistance for the altcoin was $6.70, which previously served as a support level.
If LINK manages to break above the aforementioned level, the next price cap would be $7.34.
The nearby support level for the coin was $6.22, but if the bears fully take over, LINK could fall to $5.54.
The amount of Chainlink traded in the last trading session has increased, which means that the buying force was recovering in the market.
Technical analysis
The altcoin in the past 24 hours has risen 2% and the buying strength has also shown some recovery. The relative strength index rose and crossed the half line, indicating that buying strength was slowly increasing on the chart.
This increase in buying strength cannot be termed as a bullish move, as the coin needs to break above the $6.70 price level.
LINK’s price, however, broke above the 20-SMA line, indicating that buyers are driving price momentum in the market.
When demand resurfaced, LINK moved above the 20-SMA line. For the bulls to completely take over, the coin must stay above the 20-SMA line.
Related Reading | Cardano is moving in the red with the market, can ADA price stay above $0.46?
The altcoin, despite rising on the chart, was still showing signs of bearish influence. The Moving Average Convergence Divergence depicts price momentum and reversals in the same.
MACD noted a bearish crossover and formed red signal bars.
These red signal bars were a sell signal for the altcoin. The Bollinger Bands, which represent price volatility, had started to narrow.
This reading meant that the risks of volatility and price fluctuation were low at the time of writing.
Related Reading | BNB basks in green as price shines 5.84% in fields of red
Featured image from Libertex, chart from TradingView.com