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- Chainlink price breaks the support trendline causing a sudden selloff.
- Buyers try to maintain the daily price close above the key ascending trendline.
- Amid the sell-off, trading volume increased by 40% overnight and was reported at $2.017 billion.
Chainlink price follows the ongoing trend in the crypto market. As of now, buyers are scared of holding any long positions they had formed a few days back. They are avoiding entering the market due to uncertainty and heavy price volatility. Market behavior suggests aggressive selling as the market leader – bitcoin – recorded its latest 52-week low.
Chainlink price is underperforming across a broad horizontal range. Bears sit in the $9.5 resistance zone, on the contrary, buyers barely dominate the crypto price at the $5.5 to $5.8 support level. Despite the recent correction, the price of LINK has reached the lower limit of this huge range and it spreads bearish in the market.
Massive selling started on Tuesdays, resulting in, Chainlink price breakdown the support trendline. Although, bears are not close to the daily price closing below this level yet. Buyers try to maintain daily price closing above the key ascending trendline. Amid selling, trading volume increased 40% overnight and reported at $2.01 Billion, shows bears’aggrasiveness.
At the time of writing, buyers face intense selling pressure as crypto trades below the 20 day moving average on daily time frame. Meanwhile, buyers barely hold price above support line while it stays at $6.77 mark along with 12.7% intraday drop. Hence, market capitalization reached $3.32 Billion, plumped 22% overnight.
On the daily price chart, the RSI indicator is moving lower to visit in oversold territory. This week’s sign shows more selling at Chainlink price. Buyers should be careful in upcoming trading sessions. Furthermore, MACD just reflected bearish crossover and still both moving lines stay in the positive region.
Conclusion
The Chainlink price will be bullish until bears break the support trendline. Buyers need to maintain this support trendline and should be careful in upcoming trading sessions because due to Bitcoin collapse investors are reducing long-positions.
Support level – $5.8 and $5.5
Resistance level – $9.5 and $10
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
