Chainlink Faces Major Correction, What Lies Ahead?
After experiencing a significant 13% correction, Chainlink has broken crucial support levels, causing concern among traders and investors. The current bearish sentiment in the market coupled with Bitcoin struggling below $70,000 emphasizes the importance of understanding Chainlink’s technical landscape for the near future. Here’s what you need to know about Chainlink’s recent price action and potential outlook.
Chainlink’s Support Breakdown on 4-Hour Chart
- The recent 13% correction has turned Chainlink’s price trajectory bearish.
- Key support levels, such as $17.40 and $16.70 (corresponding to the 100 EMA and volume profile peak), have been breached.
- The price has entered the green zone aligned with the 200 EMA on the 4-hour chart.
- Resistance points at $16.70 and $18.00 are expected to challenge any upward movement.
Important Support Levels to Monitor
- The levels of $15.60 and $14.30 are crucial support zones based on the Ichimoku Cloud on the 4-hour timeframe.
- These levels offer significant potential support amid the current bearish trend in Chainlink’s price.
Chainlink’s Daily Bearish Outlook
- The daily price action has seen Chainlink enter the Ichimoku Cloud, signaling a bearish trend.
- The RSI has declined significantly from 70 to 43, indicating a bearish sentiment among traders.
- Strong support is currently found at the 200-day exponential moving average, providing a potential bounce level.
Potential Scenarios for Chainlink
- A further decline to the $14.30 support level would confirm a bearish trend, potentially pushing Chainlink lower.
- If Chainlink breaks key support levels and moves below $15.60, the outlook remains bearish in the mid-term.
- A move above the daily 50 EMA and 100 EMA at $16.30 – $16.50 could signal a bullish momentum for Chainlink.
Monitoring Key Support Levels for Informed Decisions
Traders should closely watch the support levels of $15.60 and $14.30 to make informed decisions and manage risks effectively in the current market conditions. Chainlink’s price decline, now 30% lower than its recent peak in March 2024, suggests the potential for further downward movement, highlighting the need for strategic adjustments and close monitoring of market trends.
Hot Take: Keeping a Close Eye on Chainlink’s Price Movement
As Chainlink navigates through a challenging period with critical support and resistance levels, it is essential for traders and investors to stay vigilant and adapt their strategies accordingly to capitalize on potential opportunities and mitigate risks.
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