Chainlink Holds above $15 Support as Buyers Emerge in the Oversold Region

Chainlink (LINK) remains in a downward correction as the price breaks below the moving averages.

Yesterday, the cryptocurrency fell to the previous low at $15, the price level it reached during the price collapse on January 22. The current support is the oversold area of the market. Since January 22, the bulls have failed to keep the price above the moving averages.

A break above the moving averages would signal the resumption of the uptrend. However, on February 7, the bulls broke through the 21-line moving average but were rejected at the $19 high. If price breaks through $19 resistance and bullish momentum continues, Chainlink will regain its bullish momentum. Today, LINK is consolidating above $15 support as buyers pull back for an upside move.

Chainlink indicator reading

LINK/USD is at the 40 level of the Relative Strength Index for period 14. Chainlink is trading in the downtrend zone and is below the 50 center line, meaning it is vulnerable to further downside movement. The altcoin is below the 20% range of the daily stochastic. This means Chainlink is trading in the oversold region of the market. This region will attract buyers who will drive the crypto's prices up.

Technical indicators:  

Major Resistance Levels - $55 and $60

Major Support Levels - $20 and $15

What is the next move for Chainlink?

Chainlink is in a downtrend after rejecting the high at $19. Meanwhile, the downtrend from February 8 has a candlestick body testing the 50% Fibonacci retracement level. The retracement suggests that LINK will fall to the 2.0 Fibonacci extension level or $16.09. The price action shows that Chainlink has fallen above the Fibonacci extension, but has found support above $15.

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.