Chainlink Consolidates in a Tight Range but Stable $6.00

Chainlink (LINK) is in a downward correction as the altcoin continues its sideways movement. On May 30, the bulls broke the 21-day moving average line, but failed to keep the price above the $8 resistance level. This will be the second rejection of the recent high.

Chainlink resumed its sideways movement, fluctuating between the prices of $6.20 and $8. This fluctuation range has not been broken since May 12. Buyers and sellers seem to have reached a stage of indecision. If the bears break the current support, the market will fall back to the previous low at $5.50. LINK is trading at $6.92 at the time of writing. 

Chainlink indicator reading  

Chainlink is at level 41 of the Relative Strength Index for period 14. The altcoin is in the downtrend zone and may fall further. The price of the cryptocurrency is below the moving averages, indicating a possible downward movement of the cryptocurrency. The altcoin is below the 40% area of the daily stochastic. The altcoin is in a bearish momentum.

Technical indicators:  

Major Resistance Levels - $55 and $60

Major Support Levels - $20 and $15

What is the next move for Chainlink?

Chainlink is still fluctuating at the bottom of the chart. The price of the cryptocurrency is moving sideways, but in a narrow range. The price movement is characterized by small indecisive candles called doji. Meanwhile, on May 12 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that LINK will fall to the level of the Fibonacci extension of $1.272 or $3.03.

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.