Cryptocurrencies Economy News

Chainlink faces minor dip before resuming uptrend

Sponsored
  • Chainlink price is seeing a pullback in the uptrend following a technical signal that the token has reached its local high.
  • LINK is heading lower to retest critical support levels as bearish traders target 28.61.
  • Token may fall towards the lower boundary of the parallel channel as bulls catch their breath.

Chainlink price faced strong resistance at $31.26 when it hit the upper trendline of the prevailing chart pattern and is decreasing as the bulls lose strength. LINK headed for a minor drop as a critical technical level suggests the token has reached its local high.

Chainlink

MetaNews.

Chainlink price falls after facing a difficult hurdle

The Chainlink price is sliding down after testing the upper boundary of the ascending parallel channel on the 12-hour chart. The Momentum Reversal Indicator (MRI) issued a sell signal at this critical point suggesting that LINK just recorded its local high, which triggered a sharp turnaround.

Although the prevailing chart pattern suggests that Chainlink price headed higher. LINK may need to retest crucial support levels before resuming its uptrend. The token’s first line of defense is at the 50% Fibonacci retracement at $28.61.

Additional support may emerge at the midline of the parallel channel at $28.26

Chainlink price may find additional support at the midline of the parallel channel at $28.26. Before falling towards the 21-period simple moving average on the 12-hour chart at $27.66. Selling pressure could cause LINK to drop towards the next support point at $26.76. Where the 50 SMA and the 38.2% Fibonacci retracement converge.

It is IntotheBlock’s model which indicates that the largest support group of 33,330 directions bought 43.53 million LINK at $26.99. That lends credence to the strength of the aforementioned line of defense.

However, if Chainlink price experiences a surge in sell orders, LINK may slide further, testing the 200 SMA at $25.11, the lower boundary of the governing technical pattern.

LINK, on the other hand, would need to overcome the 61.8% Fibonacci retracement at $30.46 before it aims higher towards $31.28, where the MRI indicator displays a line of resistance. Chainlink price could target $33.09 below, at the 78.6% Fibonacci retracement, to establish a higher high if the bulls manage to overcome this hurdle.

Avatar

Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
Follow Me:

Related Posts