CHAIN LINK token price analysis: LINK token price is crowded by the bears and bulls, what’s next?
- LINK token price is consolidating in a small range on a daily time frame, from the past couple of weeks
- The token price is getting ready for a massive move on the breakout side.
- The LINK token price is currently trading at 0.0003637 with a decrease of 0.82% in the past 24 hours.
On Daily time frame, LINK token price is hovering around the demand zone after facing strong rejection off the supply zone. While focusing on the supply zone, the token price demonstrated strong bearish pressure. The token price has now entered the consolidation zone following a strong bearish move. Recent bearishness in the global cryptocurrency market appears to have had little effect on the token price, as it broke the small term demand zone. Before showing a downward movement, the LINK token price formed a strong bearish candlestick pattern in the demand zone. On a weekly time frame, the LINK token price is forming lower low and lower high formations, while on a lower time frame, the token is forming higher high and higher high formations. The price of the LINK token is currently trading below 50 and 100 MAs. This comes after the token price broke the key moving averages (MAs) during the bearish pressure. As the token price rises, it can be seen facing strong resistance from the key MAs. After falling off the upper band, LINK token price is now trading at the lower band of the Bollinger band indicator. Volumes have increased as the token price fell to the demand zone. Investors should exercise caution and avoid becoming engulfed in volatility.
The LINK token price is consolidating in a small range on a daily time frame
Average Directional Movement Index: ADX curve has been dipping on a weekly basis. The ADX curve has dipped out of the 20 mark and turned upwards in an hourly time frame. The ADX curve has risen above the zone, indicating strong bullishness, as seen in the 4-hour time frame. The ADX curve is still pointing upward as the token price hovers around an important demand zone. Investors should look for a positive candle formation to signal a bounce off demand zone
Moving Average Convergence Divergence: On a longer time scale, the LINK token price remains bearish. On a smaller scale, the token price depicts the same as it fell to the demand zone. As a result, the MACD indicator indicated a negative crossover. If bears do not outnumber bulls in the next 72 hours, the blue line will cross the orange line on the upside, indicating bullishness for a shorter period. If the token price breaks through the supply zone, breaking the consolidation zone, the MACD line will widen, supporting the trend.
Supertrend: The LINK token price has fallen due to strong rejection from the supply zone. Until recently, the token price was consistently resting at the super trend buy line, but recent bearishness caused the super trend sell line to break. As a result, LINK token price dropped, and the super trend indicator signalled a sell. As the LINK token price rises, it will face strong bearish pressure as it approaches the supply zone.
Conclusion: The LINK token price is trading in a small range on a daily time frame. The token price managed to sustain above the demand zone despite the bearings trend prevailing in the global cryptocurrency market. The technical parameters are indecisive as the token price consolidates. It remains to see if the token price breaks on the upside or downside.
Support: $5.61 and $5.75
Resistance: $9.21 and $9.71