At the time of writing, Chainlink was bearish on its charts. During the past week, the coin saw significant declines on its charts. Chainlink’s technical outlook remained negative, despite an overnight appreciation of 2%. The movers’ prices due to the market downturn have prompted many altcoins to move south on their charts.
Earlier, LINK was consolidating between $6.70 and $7.00 respectively. LINK price declined as it moved below the $6.70 price mark. The technical outlook began to reflect a change in price direction as the market gained a bit of buying power.
Despite the change in technical outlook, LINK was still hovering in bearish areas. At the present time, the price movement of altcoins cannot be termed as invalidation of the bearish thesis. For LINK to beat the bears, the coin needs to stay above the $8.00 mark.
Moreover, should the buying power remain positive, a decline would take the coin below the $6.00 support level. Today the global cryptocurrency market capitalization is $1.03 trillion and a 1.5% positive Changes in the last 24 hours.
Chainlink price analysis: 4-hour chart
At the time of writing, LINK was trading at $6.58. Before the fall on its charts, the coin was priced between the $6.70 and $7.00 levels respectively.
The immediate resistance for the altcoin was at $6.70, which previously acted as a support level.
If LINK manages to move above the above level, the next price range will be $7.34.
Nearby support for the coin is at $6.22, but if the bears completely dominate, LINK could drop as low as $5.54.
The last trading session saw an increase in the volume of Chainlink traded, which means that the buying power in the market was recovering.
technical analysis
The altcoin is up 2% in the last 24 hours and the buying power has also shown some correction. The Relative Strength Index moved further above the half-line, which indicated that buying power was gradually building up on the charts.
This increase in buying power cannot be termed as a bullish move as the coin has to move beyond the price level of $6.70.
LINK price however broke above the 20-SMA line which is a signal to buyers to drive price movement in the market.
LINK moved above the 20-SMA line as demand resumed. For the bulls to be fully handled, the coin has to stay above the 20-SMA line.
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The altcoin is still showing signs of being under a bearish influence despite rising on the charts. Moving Average Convergence Divergence depicts price movement and reversal in the same.
MACD noted a bearish crossover and formed a red signal bar.
These red signal bars were sell signals for the altcoin. The Bollinger Bands representing price volatility were beginning to decrease.
This reading meant that at the time of writing there was little chance of price volatility and volatility.
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Featured image from Libertex, chart from TradingView.com