Chainlink has experienced a 13% correction on Friday, causing concern among traders and investors. The price of LINK has turned bearish, breaking key support levels such as $17.40 and $16.70 on the 4-hour chart. The current market conditions, with Bitcoin struggling below $70,000, suggest that LINK may face challenges in breaking through resistance levels at $16.70 and $18.00.
On the daily price action, Chainlink has entered the Ichimoku Cloud, indicating a bearish signal. The Relative Strength Index (RSI) has dropped significantly from 70 to 43 within this timeframe. LINK is finding support at the 200-day exponential moving average, with a potential downward trend towards the $14.30 support level. Breaking below this level could indicate a bearish trend for LINK in the near future.
In the mid-term, if the price of LINK breaks the EMA 200 level and breaches the $15.60 support level, it could signal a very bearish outlook. However, rising above the daily 50 EMA and 100 EMA levels could present a more optimistic scenario for LINK, pushing it above the Ichimoku Cloud and indicating a bullish trend. Monitoring key support levels at $15.60 and $14.30 can help traders make informed decisions and manage risk effectively.
The decline in LINK’s price, now trading 30% below its local high from March 2024, suggests the potential for further declines. Therefore, it is crucial for traders to closely follow market developments and adjust their strategies accordingly. This analysis article serves as informational content and should not be considered financial advice. Readers are encouraged to conduct their own research and consult with a professional before making any investment decisions.
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