Chainlink Fails to Break $24 High and Continues Downward Correction

The price of Chainlink (LINK) has resumed its downward correction as the altcoin faces rejection at the $24 high.

Chainlink (LINK) Price Long Term Analysis: Bearish

On December 27, buyers attempted to push LINK above the $24 high but were rejected. A bearish pinbar, known as a shooting star, has appeared in the uptrend, indicating a possible reversal of the uptrend. The cryptocurrency has dropped below the moving averages. Chainlink is trading at $19.80 as of press time. The altcoin is consolidating above the $19 support. 

LINK will try to rise if the current support holds. The market will continue to fall to $17 or $15 if current support does not hold.

Chainlink (LINK) Indicator Reading

Chainlink has fallen to level 44 on the Relative Strength Index for period 14. The altcoin is now in the down zone and may fall to the downside. Chainlink is above the 25% area of the daily stochastics. The stochastic bands are sloping horizontally, indicating that the altcoin is in a sideways movement. The price of LINK is below the 21-day line SMA and the 50-day line SMA, suggesting that the altcoin may resume its downward movement.

Technical Indicators:

Key resistance levels - $55 and $60
Key support levels - $20 and $15

What is the next move for Chainlink (LINK)?

Chainlink is in a downtrend but consolidating above the $19 support. Meanwhile, the downtrend from Nov. 28 has shown a candle body testing the 78.6% Fibonacci retracement level. The retracement suggests that LINK will fall to the Fibonacci extension level of 1.272 or the high of $19.41. Price action indicates that the market is retesting the Fibonacci extension as it resumes consolidation.

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