The Chainlink price has dropped to an eight-month low as the coin fell from the $6.30 price level. Since the Chainlink price has touched a multi-monthly low, the chances of the price turning around remain extremely likely. As Bitcoin slipped on its chart too, most altcoins have been depreciating on their respective charts as well.
The technical outlook of the coin was bearish as accumulation decreased due to an increase in liquidation. Broader market support is necessary for LINK to propel its price to a higher level. For instance, Bitcoin has been stuck between the $17,400 and the $18,000 price levels.
If BTC trades above the $17,400 level, multiple altcoins can potentially rally. Although the overall trend of the Chainlink price does not clearly indicate a breakout on the upside, the coin currently trades near a level that has previously triggered several rallies for the coin. Chainlink’s trading volume has decreased, indicating that bears have taken control of the market.
Chainlink Price Analysis: One-Day Chart
LINK was trading at $5.99 at the time of writing. Ever since Chainlink fell from the $6.30 price level, the altcoin has broken below multiple support lines. Presently, the altcoin has secured the $5.70 support line as its local price floor.
If demand for the altcoin registers a considerable increase, then the first barrier for LINK stood at $6.30, which marks a 40% rally in the price of the asset alone.
Moving above the $6.30 mark can push LINK into the $7 zone. On the other hand, losing the $5.70 support line will drag Chainlink to $5.40. The amount of LINK traded in the last session declined, indicating sellers were dominant in the market.
The altcoin has registered a significant fall in demand ever since the beginning of this month. The Relative Strength Index (RSI) also noted a multi-month low at the time of writing. The RSI was below the 40-mark and it registered a downtick; this could mean a further fall in price before LINK makes a comeback.
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The Chainlink price also travelled below the 20-Simple Moving Average (SMA), representing that the sellers were driving the price momentum in the market. SMA, however, registered a golden cross, which is when the 20-SMA crossed over the 50-SMA line; this marks a bullish signal for the coin.
LINK also captured a sell signal on the daily chart. This was an indication to owners to sell the asset and buy later, as the altcoin’s price could fall further. The Moving Average Convergence Divergence (MACD) displayed red signal bars that are tied to the sell signal for the asset. The Bollinger Bands portray price volatility and fluctuation. The bands drew closer together, indicating that the price might fall further.
Over the last 24 hours, LINK has dipped by 2%. In the past week, the coin has lost close to 14% of its market value.
Featured Image From UnSplash, Charts From TradingView.com