- LINK token dropping below 20 day EMA.
- Bears are gaining momentum and trying for a breakdown.
Chainlink token shows a fall in the recent trading session and shows bearish cues on the charts. Moreover, the price action is now favouring sellers due to the retardation of price below the 20 day EMA, signals a forthcoming breakdown on charts which will be happening soon.
The price action shows a rejection of the higher neckline of the rising parallel channel where price reversed from the supply zone of $8,00 where price faces multiple time rejection from there and reverted back from there which shows a strong resistance was there which bulls did not surpass.
Moreover, the dropdown in price in the last few sessions shows that a bearish cycle from the higher tops was started and token unable to hold the gains and soon short positions were made by the sellers which resulted in a dropdown.
When writing, LINK token trades at $6.42 with an intraday drop of 0.77% showing neutral indications. Moreover, the pair of LINK/BTC is at 0.000238 BTC, and the intraday trading volume increased by 3.19% to $107.54 million. The day high of LINK is $6.507, and the day low is $6.393. The market cap of LINK is $3.31 Billion.
Daily Chart Formation of Chainlink
On the daily charts, LINK token shows rising parallel channel formation, but price is struggling to hold near the lower neckline of the pattern.Meanwhile, the battle between the bears and bulls is still in action. If the token breaks the channel lows of $6.00, then a sharp breakdown can be seen, and the token will fall towards the secondary support of $5.80.
The LINK token was trying to depart above the congestion range on the daily chart , but sellers spoiled the dreams of the buyers and threw back the token towards the lower trendline.
The price action shows that bears are acquiring momentum and a fresh selling was noted in the token in the last trading session.The lower trendline was respected by the buyers who were getting support at the base mark of $6.100 multiple times in the past days.
What Traditional Indicators Say?
On the 4 hours chart, Chainlink token barely managing the gains and headwinds was noted on the charts with the recent downmove in the price.Furthermore, there is strong battle to be watch because the token is struggling to hold above $6.00 which was the strong demand zone below that the token will head towards the unchartered territory.
The RSI is falling from the overbought zone and trying to hold near the neutral marks whereas a negative crossover was noted on the charts.
The MACD indicator shows a bearish crossover on the histogram with red bars floated with signs of bearishness.
Conclusion:
Chainlink token is floating near the lower trendline and investors have kept eyes on the token price for the fresh movements.
Technical Levels:
Support Levels: $6.000 and
Resistance Levels:$7.180 and $8.500
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.