Chainlink Consolidates Above $5.50 as Demand and Supply Reach Equilibrium

The price of Chainlink (LINK) has fallen to the low of $5.50 as the bulls have bought the dips. On May 12, a bearish candle shows a protruding long tail. The tail of the long candle is pointing down, indicating that there is strong buying pressure at current support.

In addition, the altcoin has fallen into the oversold area of the market. The current support is likely to hold as buyers emerge in the oversold region of the market. If the bulls overcome the $8 resistance, Chainlink will rise to the $12 high. Otherwise, the cryptocurrency will fluctuate below the $8 resistance zone. Meanwhile, LINK/USD is consolidating above the $5.50 support.

Chainlink indicator reading

Chainlink is at level 25 of the Relative Strength Index for the period 14. The cryptocurrency is trading in the oversold region of the market. The current selling pressure is likely to ease as buyers emerge in the oversold region. The altcoin is below the 20% area of the daily stochastic. This indicates that the market has reached the oversold region.

Technical indicators:  

Major Resistance Levels - $55 and $60

Major Support Levels - $20 and $15

What is the next move for Chainlink?

Selling pressure on Chainlink has reached its bearish exhaustion. The cryptocurrency is falling towards the $5.50 support. A break below this support would signal the resumption of the downtrend. Meanwhile, the May 12 downtrend has shown a candle body testing the 78.6% Fibonacci retracement level. The retracement suggests that LINK will fall to the 1.272 Fibonacci extension level or $3.70.

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.