Chainlink price analysis: LINK rejected at $6.400, what is next for the asset?

TL;DR Breakdown

  • Chainlink price analysis suggests sideways movement at the level
  • The closest support level lies at $6.300
  • LINK faces resistance at the $6.400 mark

The Chainlink price analysis shows that the LINK price action has struggled to break above the $6.400 mark and the price continues to trade below the level as the bulls struggle to generate momentum.

The broader cryptocurrency market observed a bullish market sentiment over the last 24 hours as most major cryptocurrencies recorded positive price movements. Major players include BTC and BNB, recording a 3.42 and a 1.06 percent incline, respectively.

Chainlink price analysis: LINK consolidates at $6.500

Technical indicators for LINK/USDT by Tradingview

The MACD is currently bullish, as expressed in the green colour of the histogram. However, the indicator shows low bullish momentum as observed in the low height of the histogram. Moreover, the lighter shade of the histogram suggests a declining bullish momentum as the price struggles to climb past $6.40.

The EMAs are currently trading high above to the mean position as net price movement over the last ten days remains positive. However, the EMAs move close together suggesting low momentum across the timeframe. Moreover, the converging EMAs suggest an increasing bearish pressure for the asset. 

The RSI briefly rose to the overbought region but has since went back into the neutral region as LINK got rejected at the $6.40 price level. Currently, the index is trading at the 63.22 mark showing steady bullish momentum with horizontal slope suggesting an equilibrium between both sides of the market. 

The Bollinger Bands are wide at press time as the price action observes relatively high volatility across the 4-hour charts. Currently, the price is trading close to the indicator’s upper limit suggesting high volatility across the timeframe. The indicator’s mean line provides support at $6.214 mark while the upper limit presents a resistance level at the $6.441 mark.

Technical analyses for LINK/USDT

Overall, the 4-hour Chainlink price analysis issues a buy signal, with 16 of the 26 major technical indicators supporting the bulls. On the other hand, only three of the indicators support the bears showing low bearish presence in recent hours. At the same time, seven indicators sit on the fence and support neither side of the market. 

The 24-hour Chainlink price analysis shares this sentiment and also issues a buy signal with 11 indicators suggesting an upwards movement against eight suggesting a downwards movement. The analysis shows a struggle for dominance between the bulls and the bears across the daily charts. Meanwhile, the remaining seven indicators remain neutral and do not issue any signals at press time. 

What to expect from Chainlink price analysis?

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4-hour chart by Tradingview

The Chainlink price analysis shows that the Chainlink market is enjoying a strong bullish rally as the price rose from $5.60 to the current $6.400 in the last 10 days. Currently, the price is facing strong resistance at the level and the bulls appear to be overstretched, however, if the bulls break above $6.400, the next resistance level lies at $6.500 mark. 

Traders should expect LINK to slow down at the level as while the technical analyses are bullish, the short-term charts support the bears suggesting a lack of bullish momentum across the 4-hour chart. Currently, the price can be expected to trade in the $6.300 -$ 6.500 range while a breakout in either direction would start a rally.

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