On July 1, 2019, the Chainlink price began an upward movement. The next day, highs of nearly 40,000 satoshis were reached. However, the LINK price has fallen since then. Prices below 23,000 satoshis were hit on July 10 – a drop of nearly 50 percent.
Will the price continue to fall or is there a reversal? Read on below to find out.
Chainlink Prize: Trends and Highlights for July 12th
- LINK / BTC trades within a descending wedge.
- Short term moving averages are bullish.
- There is support close to 23,000 satoshis.
- There is resistance close to 28,000 and 31,000 satoshis.
LINK price in a descending wedge
The LINK price is analyzed every hour. The 10- and 20-hour moving averages (MA) are shown in the second graph.
Since hitting the above high on July 2nd, the LINK price has been trading within the descending wedge described below.
The movement within the wedge was gradual with no significant fluctuations.
At the time of writing, LINK price was trading near the resistance line of the wedge.
It has previously made four attempts on an outbreak.
It is also approaching the end of the wedge.
A look at the 10 and 20 hour moving averages (MA) suggests that the price is likely to break out in the near future.
The LINK price is traded above both MAs.
Also, they have started to tilt upwards and possibly braced themselves for a bullish cross.
In this case, it would serve as confirmation that an uptrend is likely to begin.
A longer-term view shows that the Chainlink price has been following an ascending support line since May 13th.
In addition, it gives us an area of support close to 23,000 satoshis.
At the time of writing, LINK price was slightly above this area of support created by the June 12 highs.
If the price continues to decline at the rate predicted by the wedge, it should hit the support line at some point next week.
To do this, however, it would have to break out of support with 23,000 Satoshis.
One look at the moving averages suggests that there is indecision in the market.
First, the LINK price is trading below both the 10 and 20 day MAs, with the latter facing very tight resistance.
As the MAs fall, they still haven’t made a bearish cross.
Furthermore, the recent decline was not preceded by a bearish divergence.
Hence, it is possible that the price will soon resume its upward movement.
Given the short term analysis, it is likely that it will.
If Chainlink price breaks the wedge, two areas of resistance are described below.
The closest area of resistance is near 28,500 satoshis, followed by resistance near 31,500.
According to our analysis, it is likely that the LINK price will reach at least one of these ranges.
The LINK price has risen since May.
It is currently trading in a descending wedge.
According to our analysis, the price is likely to break out of the wedge soon and reach one of the resistance areas described above.
Do you think the LINK price will break out of the wedge? Let us know in the comments below.
Disclaimer: This article is not and should not be construed as trading advice. Always consult a trained finance professional before investing in cryptocurrencies as the market is particularly volatile.
The images were kindly provided by Shutterstock, TradingView.
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