Chainlink Worth Prediction: LINK is dancing on the sting of a excessive cliff as a collapse under $ 20
- Chainlink struggles to hold support at the 100 SMA on the 4-hour chart as the declines ease.
- The short-term technical picture turned bearish as the MACD fell below the signal line.
- The downward outlook is underpinned by intense opposition from LINK, as the IOMAP model shows.
- A buy signal from the TD sequence indicator on the 4 hour chart could indicate the resumption of the uptrend.
Chainlink is facing increased pressure to sell, just like most cryptocurrencies on the market. Overhead pressure started spike at $ 31.5 after the recent rejection. The preliminary support on the 50 Simple Moving Average did little to anchor the Oracle token for live price feeds ahead of the ongoing collapse.
Chainlink needs critical support to avert losses below $ 20
At the time of writing, Chainlink is trading at $ 26 while holding immediate support from the 100 SMA. When bears cut through this short-term anchor zone, massive sell orders are triggered as more sellers come off the sidelines.
A comprehensive look at the Moving Average Convergence Divergence (MACD) suggests a longer-lasting bearish narrative. Notice that the MACD line (blue) is about to cross the signal line, an impressive bearish signal. If the indicator generally falls towards the center line, Chainlink can retest the next major support provided by the 200 SMA just below $ 20.
LINK / USD 12 hour chart
IntoTheBlock’s IOMAP model underscores mounting pressure to sell toward $ 30. This shows that the recovery is either delayed or takes longer. The model draws our attention to the region between $ 28 and $ 29. Almost 12,800 addresses had previously bought around 21.6 million LINKs here. The selling pressure in this area should absorb the buying pressure in the event of a recovery.
Chainlink IOMAP diagram
On the flip side, the IOMAP model highlights the robust support, which ranges from $ 22.30 to $ 23. Around 10,700 addresses are currently benefiting from the almost 34.3 million LINK that were purchased within the price range. If you hold above it, it may invalidate the downturn below $ 20.
Look at the other side of the fence
The TD Sequential indicator showed a buy signal on the 4 hour chart. This call for sale was manifested in a red candlestick. The signal shows that selling pressure will ease as buyers prepare to take control. If validated, Chainlink could recover in one to four 4-hour candles.
LINK / USD 4 hour chart
The 4-hour chart shows that most of the buy signals are validated by Chainlink, resulting in massive recovery moves. So it is important to look for support, preferably the one highlighted by the IOMAP. Buyers should build an uptrend from this level.
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