Chainlink Falls Below Previous Low Of $5.77 As Buyers Emerge

Chainlink (LINK) fell to a low of $5.42 on December 30. Bearish momentum fell below the prior low of $5.77 as bulls bought the dips.

Chainlink price long-term analysis: bearish

Buyers are currently pushing the altcoin above the previous support. On the plus side, if the price of the cryptocurrency rises above the moving average lines or resistance at $6.00, Chainlink will rise to its previous high of $8.00. In other words, the price range from $5.50 to $7.50 marks the beginning of the cryptocurrency's movement in a certain range. If the previous high is rejected, the altcoin will fall even further to a low of $3.92 or $4.00. At the time of writing, the altcoin reached a high of $5.57.

Chainlink indicator display 

Chainlink's Relative Strength Index for the 14 period is 34, showing that the cryptocurrency is moving towards oversold territory and is in a bearish trend. The current decline is due to the price bars being below the moving average lines. The daily stochastic value of 20 is currently trading below the Chainlink price.

Technical indicators 

Key resistance levels - $30 and $35

Key support levels - $10 and $5

What is the next step for Chainlink?

Although Chainlink has fallen below the $5.77 support level, the bulls have continued to buy the dips. On the downside, LINK price will fall to the 1.618 Fibonacci extension level or $3.93 if the current selling pressure continues. The oversold area of the market is where the cryptocurrency is currently trading.

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 in funds.