The price of Chainlink (LINK) is falling and has dropped below its moving average lines. The cryptocurrency asset has returned to its current support level of $5.77.
Chainlink has been trading in a range between $5.50 and $8.00 since November 9. On November 16, bears pushed the altcoin to a low of $5.78 before resuming consolidation above it. Price consolidation has continued over the past week, with the appearance of a small body of indecisive candles known as a doji. If Chainlink recovers, it will rise above the moving average lines and retake the previous high of $8.00. It is unlikely that selling pressure will continue below the current support. Buyers have been defending the current support of $5.77 since May.
For the 14 period, Chainlink's Relative Strength Index is at 37, indicating that the cryptocurrency is in a bearish trend and could fall further. The price bars are below the moving average lines, which is causing the current decline. Chainlink is currently trading below the daily stochastic value of 20, indicating that the market is oversold. Further selling is unlikely.
Key resistance levels - $30 and $35
Key support levels - $10 and $5
Chainlink is currently consolidating above the current support level of $5.77. If the price falls below the current support, the Fibonacci tool analysis will kick in. According to the price indicator, the price of LINK will continue to fall to $3.88.
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.