Chainlink Records Second-Highest Loss in Last Seven Days
Chainlink (LINK) is currently experiencing a loss of -10.4% in the past week, making it the second-highest loss among the top 20 cryptocurrencies. Ethereum holds the highest loss at -10.9%.
Potential Turnaround on the Horizon for LINK/USD
Despite the recent decline, there is optimism for Chainlink based on its 1-day chart analysis. The current market structure suggests that the corrective phase for LINK may be coming to an end.
Indicators to Watch for Chainlink Price Analysis
Several indicators and patterns are worth noting for traders and investors. The price action shows a series of higher lows, indicating a possible ascending triangle pattern, which is bullish. As long as LINK remains above the rising trend established in late October, the bulls remain in control.
The EMA positioning also provides insights. LINK is positioned above the longer-term 100-day and 200-day EMAs, signaling strong long-term bullish momentum and investor confidence. However, the short-term outlook is influenced by the 20-day and 50-day EMAs, which create potential resistance levels.
Fibonacci retracement levels suggest that LINK has recently tested a resistance level at $14.70 and could find support at $12.85 and $11.53 if a bearish reversal occurs.
Trading volume has been moderate with no significant spikes indicating a clear market direction. The RSI hovers around 50, suggesting a neutral market sentiment without overbought or oversold conditions.
The MACD indicator shows bearish sentiment in the short term, but a potential crossover could indicate a change in momentum towards a bullish phase.
Bulls in Control for LINK/BTC
The LINK/BTC trading pair favors the bulls as well. The descending trend line, which previously acted as resistance, was broken in October, indicating a potential reversal of the downtrend. A successful retest of the trend line in January further confirms the shift in market sentiment.
A breakout above 0.0004472 could propel LINK towards higher levels.
Hot Take: Cautious Optimism for Chainlink
Chainlink’s technical analysis suggests cautious optimism. While there is an upward trend since November, immediate resistance near $14.70 should be monitored closely. Traders and investors should pay attention to these indicators for potential continuation of the uptrend or a reversal if support levels weaken.
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