Chainlink Price Analysis: LINK/USD turned from first major resistance and now the bulls are struggling

  • The LINK/USD pair is trading a few points from the 200-day EMA
  • Upper key resistances around $23 and $24
  • At the time of writing, the coin is trading at $21.70

Chainlink Price Analysis: General price overview

The LINK/USD pair is trading a few points from the 200-day exponential moving average at $21.35  after the bulls were unable to defend the $22.50 support on yesterday’s daily chart. Nonetheless, the bulls have been able to put up a strong defense for the $20 support level to prevent a break below this level. At which point the coin might slope further downwards to $15 and activate massive selling pressure for traders intending to break even. Overall, today’s chart is bearish and characterized by moderate volatility.

Presently, the coin is attempting to win over support at the 50 -day simple moving average at $21.78. This could help the coin gain more momentum and crush resistances around $23 and $24. Other indicators signaling a bearish movement are the accumulation/distribution and the Squeeze Momentum Indicators. There is a 1.2 percent gain in accumulation volume at the time of writing. Nonetheless, the relative strength index lies within the overbought region but could be headed downwards towards oversold on the 4-hour chart, indicating signs of heightening seller volumes.

Chainlink price movement on the 24-hour chart: Daily chart stuck below key resistance at $22

Chainlink price has traded within a bearish movement for the better part of the daily chart, until recently when it began showing signs of receding bearish pressures. The LINK/USD trading pair opened the intraday session at a price of $21.59, before facing a downswing to the intraday low of $20.02.  Today’s daily range is only a 1 point deviation between the daily low and the daily high, which indicates scarce volatility across the chart.

Chainlink Price Analysis: LINK/USD turned from first major resistance and now the bulls are struggling 1
Source: TradingView

Chainlink 4-hour chart: Convergence of the bands

Chainlink formed a long candlestick on the 4-hour daily chart which rose from the daily low to today’s high of $21.98. The 4-hour session shows positive signals for an uptrend, the bulls might take control of the price movement if LINK can beat resistance at $22. At the time of writing, the coin is trading at $21.70. The Bollinger bands are converging and the price is leaning towards the upper band, which is also the 100-day simple moving average and is at $21.78.

Chainlink Price Analysis: LINK/USD turned from first major resistance and now the bulls are struggling 2
Source: TradingView

Chainlink price analysis conclusion: Where is LINK heading to? 

If the bulls can manage to sustain the current Chainlink price action and activate more green lights, a break out above $22 is possible. However, the bears are more likely than ever to defend this price level at all costs and build up resistance in the course of the 24-hour chart. If the bears take control, they might sink LINK’s price below $20, which could activate a strong downtrend below $15 or even lower levels.

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