Chainlink Hovers over $15.05 Support as Bears Threaten to Short

Chainlink (LINK) has continued its downward move as the bears try to break the previous low at $15.05. Since July 1, LINK /USD has fluctuated between the $17.60 and $19 price levels. Today, the market fell to the $15.22 low after breaking the lower price area.

The LINK price corrected upwards to retest the lower price area of $17. This signals the resumption of the downward movement. Selling pressure will continue if the price breaks the previous low. It is likely that Chainlink will continue to fall either $14 or $11. LINK /USD is trading at $15.23 at the time of writing.

Chainlink indicator reading

Chainlink has fallen to the 33 level of the Relative Strength index period 14. It indicates that the market is approaching the oversold region. The altcoin is in the downtrend zone and is capable of falling downwards. The cryptocurrency is below the 20% area of the daily stochastic. This suggests that the altcoin is already in the oversold region. Selling pressure is likely to ease as buyers emerge.

Technical indicators:

Major Resistance Levels - $55 and $60

Major Support Levels - $20 and $15

What is the next move for Chainlink?

Chainlink is in a downtrend. The altcoin corrected upwards to retest the $17 high. Meanwhile, on July 14 downtrend, a retraced candle body tested the 61.8% Fibonacci retracement level. This retracement indicates that the market will fall to the 1,618 Fibonacci extension level or the $14.40 level. Based on the price action, Chainlink is trading at $15.40 at the time of writing.

Disclaimer. This analysis and forecast are the personal opinions of the author and 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.