Published 3 hours ago
The daily technical chart shows the Chainlink price has followed a range-bound rally for the past four weeks. Several times, the coin price has retested both the upper($9.54) and lower($6.2-$5.8) barriers, validating them as areas of high interest. The ongoing recovery within the pattern aims for the upper barrier mentioned above.
Key points from Chainlink analysis
- A broadening channel pattern maintains the current recovery in chainlink price,
- The crucial EMAs(20, 50, and 100) accentuate a sideways ally
- The intraday trading volume in the LINK coin is $512.8 Billion, indicating a 7.3% loss.
A new bull cycle within this range was initiated on August 29th, when the Chainlink coin price rebounded from the $6.2 support with a bullish engulfing candle. The bull-run accounted for a 32.8% rally, which marked a high of $8.3.
However, the chainlink price shows a sharp reversal from this level as the crypto market witnessed a sudden sell-off. The downfall was caused when the recent CPI rate data pointed to 8.1% Y-o-Y inflation.
Furthermore, it seems the ongoing recovery in Chainlink coin price is responding to a broadening channel pattern. Thus, the pattern’s support trendline stalled the falling price at $7 and reverted it higher by 4.8%.
The altcoin currently trades at the $7.34 mark, and under the influence of this pattern, it could rise even to the top resistance of $9.5. However, the very nature of this pattern is bearish, and therefore, a breakdown from its support trendline will trigger a significant correction.
Thus, the trendline breakdown will accelerate the bearish momentum and plummet the prices to $6.2-$5.8 bottom support.
However, concerning the bigger picture, the chainlink coin will remain sideways until prices don’t breach the $9.5 or $5.8 barrier.
RSI indicator: the daily-RSI slope attempt to re-enter the bullish territory indicates the market participant still keeps hopes from Chainlink price
Bollinger band indicator: the coin price trading above the midline reflects the current market value is higher than the mean value from the ongoing price range.
- Resistance levels- $7.42, and $8.16
- Support levels- $6.6 and $6.2-$5.8
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.