- Chainlink price expected to fall below $36.00 support as bearish pressure persists
- The closest support level lies at $36 and further below at $32
- LINK faces resistance in climbing above the $40.00 mark.
After Climbing to the $44.00 mark, the Chainlink price action was strongly rejected, and the trend broke down as LINK fell to the $32.00 mark. Since then, while the Chainlink price has somewhat recovered, it has been unable to climb above the $40.00 mark.
The broader cryptocurrency market observes a negative market sentiment across the last 24 hours, with most major cryptocurrencies recording losses. Major players include Dogecoin and Ripple’s XRP that record a 15.63 and a 5.53 percent decline, respectively.
Technical indicators for LINK/USDT
Across the technical indicators, the MACD shows little momentum towards either side and has been oscillating around the mean line. The indicator has exhibited four crossovers in the last two days and currently is bearish but suggesting another reversal as the price rises to the $37.00 mark. The two EMAs are moving horizontally, with the 12-EMA catching up to the 26-EMA in recent hours.
The RSI has remained neutral for the last seven days and currently trades close to the 50.00 mark showing low momentum towards either side. The indicator is currently trading with a low gradient suggesting high speculation in the markets.
The Bollinger Bands are currently wide but converging downwards as the Chainlink price remains inside the $36-$40 price level. The indicator suggests a drop in Chainlink price volatility across the short-term as the trade volume continues to drop.
Overall, the 4-hour technical analysis issues a sell signal, with 10 of the 26 major technical analyses showing support for a negative price action across the timeframe. On the other hand, only six indicators lean towards the bulls showing low buyer pressure at the price level. Meanwhile, ten indicators sit on the fence and do not issue any signals at the time of writing.
The 24-hour technical analysis contradicts this sentiment and issues a buy signal with 12 indicators suggesting a bullish movement in the short-term against four indicators suggesting a downwards breakout. Similar to the 4-hour analysis, ten indicators remain neutral and do not support either side of the market.
The contradiction between the two technical analyses suggests a lack of momentum for the Chainlink price action. The price is currently oscillating around the $38.00 mark, with either side unable to break out of the $36-$40 price region.
Traders should expect Chainlink price to set another lower high at the $38.00 price level before falling back to the $36.00 mark. The support level will likely crumble by tomorrow, enabling the price to fall back to the $32.00 support level. The negative technical analyses and the falling trade volume further make this breakdown more likely.
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