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- LINK has crashed by almost 30% from its all-time high, which was established last week.
- The bearish sentiment will continue if the price of this asset fails to sustain above the support level of $28.
Like most cryptocurrencies, LINK is undergoing a significant dip since it confirmed an ATH last week. LINK has been confined in the rising channel pattern on the daily chart. While these patterns are usually bullish, a problematic situation can arise if it breaks the support level of $28. After breaking out towards the upside from the ascending triangle pattern, LINK had witnessed a massive decline which led the price of this asset to fall below the crucial support level of $36.94, suggesting the possibility of a fakeout. Currently, the price of LINK is sitting precisely in the middle of the rising channel. This demonstrates that the overall bullish trend is probably intact, and LINK has formed a new support level at $29.93.
Too Soon To Confirm The Bounce Back On The Support Level Of $29.93
On diving into the four-hour chart, we can see that LINK has finally bounced off from the support level of $29.93. But now is too soon to predict whether the bearish sentiment will continue or not. On the other hand, the price had a downward breakdown from the symmetrical triangle pattern and is looking ripe for a pullback towards the upside.
At this moment, the price of LINK is hovering below key moving averages, which are expected to act as resistance in the upcoming trading sessions. The 20 EMA (yellow) has already crossed below the 50 EMA (blue) and is now about to cross below the 100 EMA (green), which means that the trend is temporarily bearish. The 200 EMA (blue) is intervening in the possibility of an uptrend by acting as a prime resistance level at $31.66.
The RSI is hanging in the range of 42, suggesting a no trend scenario.
MACD is also giving signals of temporary bearishness as it has crossed below the signal line, and the price has also dropped below the middle line of the Bollinger bands.
CONCLUSION: While the indicators are extremely bearish for the time being, buyers could use this opportunity to buy LINK at a discount. Overall, the price action hasn’t broken out from the rising channel pattern, which is a good signal. Nevertheless, a drop below $28 could mean that the bears have prevailed.
SUPPORT : $29.93 and $28
RESISTANCE : $44.52, $40.79 and 31.66
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
