The Rally of the Bulls Ended as Chainlink Slips Below $11.00

Vasu Singhal
Vasu Singhal is a management student and a stock market trader. He believes that investment avenues and opportunities are very diversified. Therefore, he has an interest in blockchain technology too. He likes to evaluate best investments available in the financial market with showcasing the required skills.
  • The bears have struck back strongly for chainlink as it slips below the crucial price level of $11.00 again
  • The LINK/BTC pair is facing a significant decline which has resulted in the loss of -2.86% bringing the current level to 0.00094893 BTC
  • The LINK/ETH pair is aslo on a downturn facing an overall loss of -1.76% bringing the current level to 0.02852547 ETH 

Chainlink has been one of the top-performing cryptoasset from the starting of this month. It nearly rallied 30.00% positively from the starting of this month and also broke above its major resistance level of $11.00. However, the comeback of bears in the form of price corrections in the overall market conditions is currently giving a tough time to the coin as it is losing its gained momentum. 

link 1
Source: Coinmarketcap

As the weekly chart reflects, the significant bullish rally for chainlink started from the major support level of $8.50. During the bullish trend, the price levels were sustained for quite a bit between the price range of $10.00 to $11.00 which indicates that the current downtrend is between the same range and investors should not panic until the price level is not broken below $10.00. The CMP is at $10.81 with a loss of -2.81% on Thursday’s trading session. The market capitalization is at $3,783,652,852 with the 24-hour volume traded of $1,329,867,261. 

Technical Levels Favoring the Bears

LINK TECH 1
Source: Tradingview

The technical levels reflect on the downtrend faced by chainlink in the previous month which is later followed by significant price recovery action from the starting of this month. The price levels also broke above the strong resistance which was placed at 0.382fib level and gave strong bullish signals. The significant bullish momentum formed a bullish curve on the price candles which is now broken as the cryptoasset is on a bearish move. Currently, the levels are looking to sustain above 0.382 fib level. 

The relative strength index is on a bearish move and unable to sustain upper levels. The current level stands at 46.96 and a further downfall below 40 will give more momentum to the bears. 

The commodity channel index has reached the oversold region which is not a positive sign for altcoin. The current level stands at -106.66. 

The directional movement index is also providing bearish signals as there is a negative crossover between -DI(18.37) and +DI(16.98) with ADX(24.10) levels also declining. 

Is LINK Going to Lose All its Momentum? 

The deteriorating level in the technical charts isn’t representing a positive move for chainlink further ahead in the market. However, the technical support of $10.00 can prevent the bears from providing more damage. In case the price levels go below $10.00, that will be a strong bearish signal given by the cryptoasset. Until then, we expect the price levels to move in the mentioned range ($10.00-$11.00). 

RESISTANCE LEVEL: $11.00 

SUPPORT LEVEL: $10.00

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