Chainlink Reaches Overbought Region, Shows No Strength Over $22 Resistance

Aug 01, 2021 at 08:27 // News
Coin Idol
LINK is approaching the overbought region of the market

Chainlink (LINK) has completed a huge move after the price rose above the moving averages. Buyers pushed the cryptocurrency to a high of $22 after breaking through $19 resistance.

Chainlink (LINK) price long-term analysis: bearish

Currently, the uptrend is encountering resistance at the recent high as the market reaches the overbought zone. The uptrend will resume if it falls back to support above the 21-day line SMA.

 However, the RSI and Stochastic on the daily chart indicate that the cryptocurrency has reached the overbought area of the market. A further uptrend is unlikely as the cryptocurrency could face rejection at the recent high. On the other hand, the overbought condition might not last in a market with a strong trend. LINK/USD is trading at $22.19 at the time of writing.

Chainlink (LINK) Indicator Reading 

The cryptocurrency is at level 67 of the Relative Strength Index Period 14. LINK is approaching the overbought region of the market. In other words, the altcoin does not have enough room to move up. Altcoin is above the 80% area of the daily stochastic. This indicates that it is in the overbought region and sellers might show up.


Technical Indicators: 

Major Resistance Levels - $55 and $60

Major Support Levels - $20 and $15

What is the next move for Chainlink (LINK)?

Chainlink is in an uptrend, struggling to break above resistance at $22. Meanwhile, on July 26, the uptrend tested the 78.6% Fibonacci retracement level through a retreating candlestick. This retracement suggests that the market will rise to the 1,272 Fibonacci extension level or $21.54.


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.

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