Chainlink Price Rises Above The $7 Mark, Will This Support Level Hold?
Chainlink price rose above the $7 mark, which LINK has been trading below for several weeks. Over the past week, LINK has lost about 8% of its value. On the daily chart, the altcoin consolidated with a loss of 0.4%.
Most altcoins have managed to move away from their local support lines as Bitcoin found support at $23,000. At the time of writing, Chainlink’s technical outlook remains bearish. Even though LINK broke through the $7 mark, demand for the altcoin was low.
Purchasing power has also been low as LINK’s stock has declined. Once Chainlink rises above its immediate resistance level, buyers will notice a recovery. With an increase in purchasing power, LINK will begin its bullish recovery.
Chainlink’s market capitalization has fallen over the past 24 hours, indicating that sellers have been in control of the asset’s price. For Chainlink to move up its chart, broader market power is needed.
Chainlink Price Analysis: One-Day Chart
At the time of writing, LINK is trading at $7.41. Upper resistance for the altcoin was $7.80. Even if LINK trades above the resistance above the mark, the bearish pressure will only be canceled if the altcoin rises above the $8 mark.
The immediate support for the coin was at $7.20, after which it dropped to $7 and then to $6.90. The $6.90 level will strengthen the bears to take back price control.
If Chainlink breaks the $7.80 mark, there is a chance that $7 support will continue for the altcoin. Chainlink’s trading volume was low last session, indicating that the buying power on the chart was still calm.
The altcoin failed to provide purchasing power despite breaking the $7 mark. The relative strength index was 50, indicating low purchasing power. The indicator noted a slight increase, but buyers needed help to find out the price of the asset at the time of publication.
Similarly, LINK’s price dropped below the 20 Simple Moving Average (SMA), indicating bearish sentiment as sellers continued to control price momentum in the market. A move above the immediate price ceiling will put LINK above the 20-SMA line.
Following other indicators, LINK also displays sell signals on the chart. The convergence-divergence of the moving averages also indicated price momentum and reversals. The indicator formed red signal bars tied to sell signals; this often signifies an impending price drop.
The Directional Movement Index should still be bearish as the +DI (blue) line was above the -DI (orange) line. The Middle Direction Index (red) was dropping close to the 20 mark, which meant that the current price trend was losing strength. Subsequent trading sessions are critical for Chainlink.
Credit : www.newsbtc.com