TL; DR breakdown
- Chainlink price is expected to rise to $ 27.50
- The closest support level is at $ 24.00.
- LINK encounters resistance as it crosses the USD 25.00 mark.
The Chainlink price passed the $ 25.00 mark but was unable to maintain a level of support above the price mark. The mounting easing pressure has caused the Chainlink price to fall to the support level of $ 24.00. Since then, the price has hovered around the $ 24.00 mark.
After the day started with strong upward momentum, Chainlink price quickly saw a complete reversal as the price was declined from the $ 25.00 mark. Once rejected, the price fell quickly before finding support at $ 22.50. Since then, the price has risen to the $ 24.00 mark it currently stands at.
The broader cryptocurrency market has seen mixed market sentiment over the past 24 hours as the major cryptocurrencies are split into bullish and bearish price movements. While Bitcoin and Ethereum are seeing a slight increase in prices, Litecoin, Cardano and Chainlink are seeing retracements below yesterday’s price level.
On the technical indicators, the MACD was very bullish at the start of the day but is now showing a bearish reversal. However, the small size of the red histograms suggests little bearish momentum and high bullish pressure at $ 23.00. The two EMAs remain close to each other, suggesting little momentum on either side.
The RSI has returned to the neutral zone after the recent rejection at USD 25.00. The RSI returned to the 50.00 mark before moving back up. The indicator is currently trading at 54.09, with a sharp rise indicating strong buyer pressure on price levels.
The Bollinger Bands showed expansion early in the day but are now showing convergence as the price is trading near the center line of the indicator. The bottom line is sloping up, suggesting buyer pressure at the level, while the cap suggests resistance at the $ 25.00 level. The indicator suggests little momentum on both sides with increasing upward pressure.
Overall, the four-hour technical analysis gives a buy signal of reasonable strength, with 14 of the 26 most important technical indicators pointing to an upward movement in the price. On the other hand, only three indicators point to a downward price movement. In the meantime, the remaining nine indicators are not giving signals that support both sides.
The 24-hour technical analysis shares a similar sentiment with 14 indicators in favor of bullish price action against two, suggesting negative price action. Similar to the 4 hour analysis, a large percentage of the indicators remain neutral, suggesting that neither side is supported.
Traders should expect the Chainlink price to see strong resistance at $ 25.00. However, the positive technical indicators and rising trading volume point to a bullish breakout of the level. Hence, traders can expect the Chainlink price to rise to the price level of $ 27.50.
Conversely, if the Chainlink price falls to the support level of USD 22.50, then LINK can be expected to fall to the support level of USD 21.00. Further downside is unlikely given the strong bullish market sentiment and supportive technical analysis.
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