Chainlink Rebounds above $15 Support, Poises to Reclaim the $26 High

Chainlink (LINK) has fallen deep into oversold territory in the market. The cryptocurrency hit the $15 low and retreated. Today, the cryptocurrency is falling sharply after breaking the previous low of $22.

There is a tendency for further downward movement as the altcoin approaches the previous low of $13. However, a rally at the current support is likely as the market reaches the oversold zone. Chainlink is trading at $19.02 at the time of writing.

Chainlink indicator reading

Chainlink has fallen to level 21 on the Relative Strength Index for period 14. The market has reached the oversold region of the market. It is likely that buyers will emerge in the oversold region to push prices down. Traders should take advantage and place buy orders as the market is heavily oversold. The altcoin is below the 20% range of the daily stochastic.

Technical indicators:  

Major Resistance Levels - $55 and $60

Major Support Levels - $20 and $15 

What is the next move for Chainlink?

Chainlink is experiencing a price spike as the market drops to a low of $15. Chainlink is heavily oversold as the altcoin pulls back. Meanwhile, a downtrend has started on November 26 and a retracement candlestick has tested the 61.8% Fibonacci retracement level. The retracement suggests that LINK will fall to the Fibonacci extension level of 1.618 or the high of $18.48. The price action shows that Chainlink is retracing after the recent rise in price.

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.