Chainlink Holds above $6.00 as Buyers and Sellers Reach Indecision

May 22, 2022 at 07:42 // Price
Author
Coin Idol
The uptrend was terminated at the $8 resistance zone

Chainlink (LINK) is in a sideways move above $6.00 support. The current downtrend broke above $5.50 support on May 12. Buyers were unable to sustain bullish momentum after bulls bought the dips.

The uptrend was terminated at the $8 resistance zone. After a minor retracement, the altcoin continues its consolidation above the $6.00 support. The bulls and bears have not yet broken their respective levels, hence the sideways movement. However, if Chainlink loses the current support, the market will fall back to the previous low at $5.50. The downtrend will continue if the bears fall below the $5.50 support. The altcoin will then fall further to $3.88. 

Chainlink indicator reading  

Chainlink is at level 33 on the Relative Strength Index for the period of 14. LINK is out of oversold territory in the market. Buyers are showing up to push prices higher. The 21-day line and the 50-day line SMAs are sloping downward, indicating a downtrend. The altcoin is above the 25% area of the daily stochastic. This indicates that the market is in a bullish momentum.

LINKUSD(Daily+Chart)+-+May+21.png

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 sideways movement as it holds above $6 support. Selling pressure will resume if bears break below current support levels. 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 1.272 Fibonacci Extension level or $3.88. 

LINKUSD(Daily+Chart+2)+-+May+21.png

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.

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