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Chainlink was bearish on its chart at the time of writing. Over the last week, the coin witnessed significant decline on its chart. Despite the 2% overnight appreciation the technical outlook of Chainlink remained negative. Fall in the market movers prices has pushed many altcoins to travel south on their charts.
Prior to this, LINK was consolidating between $6.70 and $7.00 respectively. A fall in LINK’s price has caused it to travel below the $6.70 price mark. Technical outlook started to reflect a change in price direction as buying strength slightly grew in the market.
Despite the change on the technical outlook, LINK was still hovering in bearish territories. At the present moment, the altcoin’s price movement cannot be termed as an invalidation of the bearish thesis. For LINK to defeat the bears, the coin has to be above the $8.00 mark.
Along with that, buying strength has to consistently remain positive, a fall in that will drag the coin below the $6.00 support level. The global cryptocurrency market cap today is $1.03 Trillion with a 1.5% positive change in the last 24 hours.
LINK was trading at $6.58 at the time of writing. Before the decline on its chart, the coin was priced between the $6.70 and $7.00 levels respectively.
Immediate resistance for the altcoin was at $6.70 which had previously acted as a support level.
If LINK can manage to swoop past the aforementioned level, the next price ceiling would be at $7.34.
Nearby support level for the coin was at $6.22 but if the bears take over completely, LINK might fall as low as $5.54.
The amount of Chainlink traded over the last trading session saw an increase which meant that buying strength was recovering in the market.
The altcoin over the last 24 hours rose by 2% and buying strength also displayed some recovery. The Relative Strength Index moved up and beyond the half-line which indicated that buying strength was slowly rising on the chart.
This rise in the buying strength cannot be termed as a bullish move as the coin has to move past the $6.70 price level.
Price of LINK however shot past the 20-SMA line which is an indication of buyers driving the price momentum in the market.
As the demand resurfaced, LINK moved above the 20-SMA line. For bulls to take over completely, the coin has to remain above the 20-SMA line.
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The altcoin despite rising on the chart minorly still displayed signs of being under bearish influence. The Moving Average Convergence Divergence portrays price momentum and reversals in the same.
MACD noted a bearish crossover and formed red signal bars.
These red signal bars were sell signal for the altcoin. Bollinger Bands which represents price volatility, had started to narrow down.
This reading meant that chance of price volatility and fluctuation was low at the time of writing.
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Featured image from Libertex, chart from TradingView.com