Bearish trend building up as LINK battles with resistance at $7.0


Chainlink price analysis indicates Chainlink‘s current price action is indicative of a bearish trend that is slowly but surely building up. After breaking down from the ascending triangle pattern in mid-May, LINK has been consistently trading below the $ 8 mark after the massive crypto crash seen in early May.LINK’s price has been bearish since the breakdown from the ascending triangle pattern and is currently trading below the $7 mark. At the moment of writing, LINK is currently trading at $6.55 and is down by 2.57 percent.

The $6.80 level has been acting as a strong resistance for Chainlink, with the price failing to break above it on multiple occasions over the past few weeks. The bearish trend is further reinforced by the presence of a descending triangle pattern on LINK’s 4-hour chart. The trading volume for LINK is $739,457,932.52 and it has declined with a significant value of 35.5 percent. Additionally, the decline in LINK has seen it rank position 21 overall on CoinMarketCap.

LINK/USD 4-hour price analysis: Latest developments and technical analysis

The Chainlink price analysis on a 4-hour chart shows LINK has been following a descending triangle pattern. The descending triangle is a bearish continuation pattern that is formed when the price action of an asset creates lower highs and finds support around a horizontal level. A breakdown from this pattern would see LINK head towards the $5.50 level.

The Relative Strength Index (RSI) is currently at the 44.00 level and is slowly heading towards the oversold region, which is a further indication that the bears are in control of LINK’s price action. The Moving Average Convergence Divergence (MACD) indicator is one of the most popular technical indicators used by traders to gauge the momentum in the market. The MACD line (blue) is currently trading below the signal line (red), which is a bearish sign.

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LINK/USD 4-hour price chart source: TradingView

On the 4-hour chart, LINK has two key support levels at $6.0 and $5.50. If the bears are able to push the price below these levels, then a further decline towards the $4.80 level is likely. On the other hand, if the bulls can defend the $6.0 level and push Chainlink’s price back above the $7.0 mark, then a move towards the $8.20 level is possible.

The overall market sentiment for LINK/USD is bearish as it is currently trading below the $7.0 level. Short-term traders may look to enter bearish positions if Chainlink breaks down from the descending triangle pattern. The stop-loss for this trade should be placed just above the $7.0 level.

The long-term outlook for Chainlink is bearish as it has been consistently trading below the $8.0 level since mid-May. The moving averages are also indicating a bearish trend as the 50-day MA (yellow) is trading below the 200-day MA (white).

The bulls will need to push Chainlink’s price back above the $8.0 level to invalidate the bearish trend. Until then, traders may look to enter short positions on rallies towards the $7.0 level.

Chainlink price analysis on a daily chart: Bears adamant in pushing LINK below $6.5

Chainlink price analysis on the daily chart shows the prices have been hovering around a range of $6.27 to $6.87, with both the moving averages and the Relative Strength Index (RSI) around the midpoint. The bulls will need to push prices back above $6.87 for any hopes of a rally.

The bearish trend is further evident on the daily chart as the 50-day MA (yellow) is well below the 200-day MA (white). The 200-day MA is currently serving as a strong resistance level for Chainlink, with the price failing to break above it on multiple occasions over the past few weeks.

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LINK/USD 24-hour price chart source: TradingView

The Moving average convergence divergence (MACD) indicator line is currently seen to be well below the signal line, which is a bearish sign. The overall market sentiment for LINK is bearish as it is trading below the $7.0 level. The market volatility for LINK is extremely high with a Bollinger band width of $1.54.

The Relative Strength Index (RSI) is currently at the 44.00 level and is slowly heading towards the oversold region, which is a further indication that the bears are in control of LINK’s price action.

Chainlink price analysis conclusion

Chainlink price analysis concludes that the prices will remain bearish below the $8.0 level in the short term. The market is expected to consolidate around the $6.50 level before a breakout as the prices look to recover from the recent sell-off.

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.

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