Chainlink prices plunged to an eight-month low as the coin fell from the $6.30 price level. With chainlink prices hitting multi-month lows, the odds of a price turnaround remain very high. Since Bitcoin has also fallen on the charts, most of the altcoins have also fallen on their respective charts.
The technical outlook for the coin was bearish as increased liquidations reduced accumulation. LINK needs broader market support to push its price to higher levels. For example, Bitcoin he is stuck between the $17,400 and $18,000 price levels.
Multiple altcoins could rise if BTC trades above $17,400. The overall trend in Chainlink price clearly does not indicate an upward breakout, but the coin is currently trading near the levels that previously caused the coin’s rally. Chainlink’s trading volume is declining, indicating that the bears are dominating the market.
Chainlink Price Analysis: 1-Day Chart
LINK was trading at $5.99 at the time of writing. Altcoins have broken below multiple support lines since Chainlink fell from the $6.30 price level.
If demand for altcoins increases significantly, LINK’s first barrier will be $6.30, a 40% increase in the price of the asset alone.
Above $6.30, LINK could be pushed into the $7 zone. On the other hand, a loss of the $5.70 support line will pull Chainlink down to $5.40. The amount of his LINK traded in the last session decreased, indicating that the seller had the upper hand in the market.
Altcoins have seen a significant drop in demand since the beginning of the month. The Relative Strength Index (RSI) also hit a multi-month low at the time of writing. The RSI has scored a downtick below the 40 mark. This could mean that the price will drop further before LINK makes a comeback.
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Chainlink price also fell below the 20 Simple Moving Average (SMA). However, SMA scored a golden cross. This is when the 20-SMA crosses the 50-SMA line. This is a bullish signal for the coin.
LINK also caught a sell signal on the daily chart. This indicated that owners would sell their assets and buy them later, as altcoin prices could fall further. The Moving Average Convergence Divergence (MACD) displayed red signal bars associated with asset sell signals. Bollinger Bands represent price volatility and fluctuations. The bands are getting closer, indicating that the price may drop further.
Over the last 24 hours, LINK has fallen 2%. The coin lost nearly 14% of its market value last week.
Featured image from UnSplash, chart from TradingView.com