Over the past week, the Chainlink price has been hovering around its local support level, as altcoins have displayed similar indecisiveness in response to broader market sentiment. However, in the last 24 hours, Bitcoin and LINK experienced slight gains on their charts.
LINK saw a 1.5% increase, and its weekly chart indicated consolidation. The altcoin’s technical outlook seems to favor the bulls. Demand and accumulation were in the positive zone, indicating increased buying strength.
While LINK painted bullish signals, it is important to note that the bullish sentiment is limited to its shorter time frame, and the higher time frame suggests a bearish sentiment.
If Bitcoin retraces below $30,500, LINK is expected to fall below its local support level, invalidating bullishness. It remains crucial for LINK to surpass overhead resistance. The market capitalization of LINK has been increasing, indicating the control of buyers in the market.
Chainlink Price Analysis: One-Day Chart
LINK is currently trading at $6.26, below the rigid resistance of $6.50. The level above acts as the overhead ceiling for the altcoin.
Despite breaking out of the bearish trendline (green), LINK has been unable to overcome immediate resistance as it remains largely bearish on the higher time frame.
The rejection at $6.50 has resulted in selling pressure, which could resume if LINK fails to move above immediate resistance. A fall from the present price level would cause the coin to drop below $6 and approach $5.80.
Technical Analysis
Demand for LINK rose as the coin moved from the $6 level. However, sellers are expected to take over if the price action stalls again.
The Relative Strength Index has moved away from the 50-mark, indicating an increase in buyers. Additionally, the price is currently above the 20-Simple Moving Average line, suggesting that buyers are driving the price momentum in the market.
As demand for LINK increased, investor confidence also grew. The Chaikin Money Flow, which measures capital inflows vs. outflows, is currently above the half-line, indicating that capital inflows are higher than outflows.
Meanwhile, the Moving Average Convergence Divergence (MACD) reflects price momentum and reversals. However, the indicator has formed red histograms on the half-line, signaling the onset of bearish action and potential sell signals for the altcoin.
Therefore, it is crucial for LINK to break past the $6.50 resistance level; otherwise, the bears will have full control over the asset.
Featured image from UnSplash, charts from TradingView.com
