Chainlink Declines as It Continues to Face Rejection from Previous Highs

Chainlink is trading in a sideways trend as the price drops to $27. The current price level may further drop as LINK faces rejection from the recent high.

For the past month, LINK attained its peak price of $36. On February 23, the altcoin encountered a breakdown as price dropped to $24. Later, the bulls bought the dips as the price corrected to $30 high. 

However, the selling pressure is compelling the price to further decline. On the downside, if the price breaks the $25 support, the market will further decline to $22.00. On the upside, if buyers can push the price above $31, LINK will commence the resumption of the upward move. Possibly, the resistance at $36 will be retested or broken.

Chainlink indicator reading 

LINK price is at level 50 of the Relative Strength Index period 14. It indicates that there is a balance between supply and demand. The price has broken the 21-day SMA and it is approaching the 50-day SMA. A break below the SMAs will accelerate the selling pressure.

Technical indicators:  

Major Resistance Levels – $38 and $40

Major Support Levels – $22 and $20

What is the next move for Chainlink?

Yesterday, the price retested the $28 high as the price resumed a downward move. On March 5 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. This retracement indicates that the market will fall to level 1.618 Fibonacci extensions. That is the low of $22.30. The Fibonacci tool analysis will hold if the price breaks the current support at a level.

Disclaimer. This analysis and forecast are the personal opinions of the author that 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.