- LINK/USD continued to retrace lower.
- Link rejected the $18 support.
- Next minor support at 16.75.
Chainlink price prediction for today is neutral as the market continues retracing. LINK currently trades around $19.5, with a market cap of $7.7 billion.
Cryptocurrency heat map by Coin360
The overall market is in the red once again. Bitcoin currently trades around $31,000 with a 24-hour loss of 8 percent. Ethereum has moved even lower with -10.5 percent over the period.
Chainlink opened at 18.39$ today after another attempt to move higher was seen yesterday. A strong support area has been reached. As explained in the previous Chainlink price prediction, LINK respected the $18 area of support with a clear rejection.
Additionally, LINK/USD did complete a head and shoulder pattern, indicating a strong reversal. A further move to the downside followed this price action signal as predicted.
However, Chainlink still has not shown clear signs of a reversal to the upside. The analyst expects further consolidation around the $18 area of support and likely even lower, as the LINK/USD prepares a base for the next mid-term move to the upside in an attempt to set a new yearly high.
During the past 24 hours, Chainlink has lost 6.5 percent and trades in a range from $17.38 to $20.48, with a volume of $4.1 billion. However, since the opening of the new daily candle, LINK has regained much of the loss.
Chainlink price chart by TradingView
As mentioned in the previous price prediction, Chainlink has exhausted itself over the past weeks. Analyst already expected the test of $18 level of support; however, the LINK retracement is yet to finish.
As seen on the 4-hour chart, an approximate area where LINK will likely continue forming a base for the next upswing is around the $17-18. Therefore, the analyst believes that LINK will see further downside in the upcoming days.
Together with the 61.8 Fibonacci retracement level, the several week ascending trendline should form an additional support area. A long position entered from this area would provide a good risk/reward ratio with the expectation that the price of Chainlink will move to at least $25.
If the additional support around the 61.8 percent Fibonacci retracement cannot hold, the analyst predicts that further downside over the upcoming weeks. The break of the support would invalidate the current price momentum, likely causing panic for LINK/USD price action.
The last support for Chainlink would be the $15 support as described last week. If the $15 support cannot hold, LINK should see a reversal over the following months.
As always, Bitcoin should show the price direction for the overall market. Therefore, it is worth taking a look at what our analysts think about BTC/USD.
The Chainlink price prediction is bearish in the short-term. During the upcoming 24-hours, LINK should continue moving lower towards the $16.5-$17 area.
LINK/USD’s price should see further retracement towards the ascending support trendline as it has offered strong support over the past weeks. This would help Chainlink to establish a new base.
Once Chainlink can form a strong base around this area of support, Link could form a much larger, mid-term reversal. For now, however, traders should stay neutral and observe the market. If LINK can move lower once again, traders could enter a long position.
If Chainlink moves below the ascending support trend line and the $15 last support level, the analyst expects a mid-term continuation to the downside, which would invalidate the current mid-term bullish trend.
For further reading, see our guide on why Ethereum Gas price is so high right now.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.