- Chainlink price analysis turns muddy as price hovers near the critical support area
- LINK/USD slides to $26.85 as the buying interest wanes near the 200-day moving average
- Resistance at $30 poses a severe challenge to the bulls amid weekend thin trading
Chainlink price is mimicking other altcoins in gradually declining towards lower support regions. The contracting Bollinger Bands are no help as the pair declines towards the $26.80 support area. The 50-day moving average is posing a challenge to the bulls amid weak volumes.
The past week saw the price move within a tight range. Today, the pair witnessed a high of $30.17 and a low of $26.06. The descending price channel does not have a sharp slope. The price is gradually fading away towards a lower support area near $25. Any sharp spike in selling can see the price pierce through $25 support to touch the $23 region.
The market is sending bearish signs to the traders, which are also reflecting in the volume figures. The shift towards bearish range has pushed the price under 50-day moving average. If the volatility peaks again, the price can see wild action on either side.
Chainlink price movement in the last 24 hours: Gradually sliding lower towards $25
Chainlink price analysis turned bullish as the pair touched the upper ends of the Bollinger Bands near $32.00. However, the sellers were ready to overthrow the party and turn the tables. The bearish price action wiped off significant gains in the past week as the LINK/USD pair slid towards $26.00. The hourly timeframe charts show that the candlesticks are painting a red picture depicting the gradual decline.
LINK/USD pair rise was limited to $32.5 level with immediate lower support at $24.5. the sideways trading is also impacting the long-term charts, which are turning neutral. A breakout can happen once the pair reaches critical oversold levels. A change in sentiment in the broader crypto market can also trigger a sudden move higher. Even in such a scenario, the gains will be limited to the $35.5 level.
Most technical indicators are displaying neutral to bearish signals. The asymmetrical triangular pattern is also emerging on the smaller timeframe charts. However, bears will have to push the price below $23.00 for the picture to turn entirely bearish.
LINK/USD 4-hour chart: Little hope for the bulls
The MACD crossover to the negative side shows the bears are grabbing hold of the pair. Even though the move is more evident only on the hourly charts, things can escalate quickly during the weekend trading. The RSI is already under 40, and it can slide quickly as selling pressure intensifies. In addition, the Stochastic RSI is further aggravating the concerns of the bulls.
Chainlink price analysis shows that the 200-day moving average is attracting some buying action. However, the weekend’s price action has nullified the positive development. On the higher side, the LINK/USD pair is under pressure from $29.60, where the 50-day moving average is inviting selling pressure from the bears.
There is a severe dent in the volumes posts the gradual decline towards the $26.06 level. As a result, the bulls will have to increase the volumes alongside liquidity to force the price upwards. According to Chainlink price analysis, the current price trajectory will take the price towards the supply zone.
Chainlink price analysis conclusion: Supply zone holds the key to higher levels
If the LINK/USD pair closes above the supply zone near $26.00, the pair has a chance to go higher. As per Chainlink price analysis, mildly positive sentiment will help bulls build their short-term rally towards $29. However, they must take along massive volumes to cross the $30 barrier. The past 24 hours show that the resolve of the bulls is weakening.
Overlapping technical indicators are also confusing the picture for the bulls. Chainlink price analysis has turned muddy due to multiple technical indicators giving contradictory signals. However, as the weekend comes to a close, the price may chart a more confident trajectory.