Chainlink Faces Rejection at $35 as the Altcoin Resumes Selling Pressure
In the last bearish impulse of May 23, Chainlink slumped to $15.04 as bulls bought the dips. LINK price corrected up to $35 high but was resisted.
The selling pressure resumes after the bulls retested the recent high. Chainlink’s uptrend was short-lived as the price dropped from $35 to $28 low. However, the bulls held the support for two days before it was breached. Sellers are most likely to revisit the previous low at $24 as the price falls. The bottom line is that if the bears break the $24 support, the market will decline to the previous low at $15.04. Presently, the LINK price is trading at $25.48 at the time of writing.
Chainlink indicator reading
The altcoin has fallen below the 20% range of the daily stochastic. It indicates that Chainlink has reached the oversold region of the market. The market will soon experience the emergence of buyers in the oversold region. The crypto is at level 41 of the Relative Strength Index period 14. It indicates that the market is in the downtrend zone and below the centerline 50.
Major Resistance Levels – $55 and $60
Major Support Levels – $30 and $25
What is the next move for Chainlink?
The altcoin was in a brief uptrend before resuming the major trend. On May 25 uptrend; a retraced candle body tested the 61.8% Fibonacci retracement level. This retracement implies that the market will rise to level 1.618 Fibonacci extensions or the high of $34.96. From the price action, Chainlink reached the Fibonacci level of 1.618 and reversed. The crypto is falling and may reach the previous low.
Disclaimer. This analysis and forecast are the author’s personal opinions, are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.