Chainlink Is Stuck Between $6.70 And $8.00 As A Price Recovery Is Imminent

Oct 10, 2022 at 07:12 // Price
Coin Idol

The price of Chainlink (LINK) is on the retreat downwards after reaching the resistance at $8.00.

Chainlink (LINK) price long-term analysis: bullish

Today, the selling pressure will continue and retest the previous low at $6.70. The bottom line is that Chainlink has been confined to a range between $6.70 and $8.00 since the price collapse on August 26. Buyers have repeatedly tried to break through this resistance level but have failed. After each refusal, Chainlink fell back to the lower price range. If buyers succeed in overcoming the existing obstacle, the market will rise again and retest the above resistance. In the meantime, the market falls back to the previous low of $6.70.

Chainlink (LINK) Indicator Reading 

The cryptocurrency is relatively stable as it is at level 49 on the Relative Strength Index for period 14. It seems that supply and demand have reached equilibrium. Due to the sideways trend, the moving average lines are inclined horizontally. The cryptocurrency has reached the oversold zone as it is below the 20% area of the daily stochastic. The current selling pressure has reached the bearish exhaustion.

LINKUSD (Daily Chart) - October 8, 2022.jpg

Technical Indicators

Key resistance zones: $10, $12, $14

Key support zones: $9, $7, $5

What is the next step for Chainlink (LINK)?

Chainlink has continued to decline after its rejection of the $8.00 resistance zone. The decline will accelerate if the price falls below the moving average. On September 29, LINK made an upward correction and a candlestick tested the 61.8% Fibonacci retracement level. The correction suggests that LINK will fall to the Fibonacci extension level of $1.618 or $7.12.

LINKUSD (4 Hour Chart) - October 8, 2022.jpg

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 in funds.

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