Chainlink Rebounds as It Revisits the Previous Low at $5.50

The price of Chainlink (LINK) resumed its downward correction after the June 13 collapse. On June 13, the price of LINK declined and retested the previous low of $5.50. Since May 12, the bulls have consistently defended support at $5.50. Current selling pressure has also stalled above $5.50.

On the upside, the upward movement was limited by the 21-day line SMA. However, Chainlink will regain upward momentum if the bulls break above the 21-day line SMA. In the last price move, the bulls broke through the moving averages but failed to sustain the bullish momentum. There are candlesticks with long tails indicating that the current support is exerting strong buying pressure. Moreover, the cryptocurrency is in the oversold zone of the market. Further selling pressure is unlikely. 

Chainlink indicator reading  

Chainlink indicator is at level 38 of the Relative Strength Index for period 14. It indicates that the cryptocurrency is approaching the oversold area of the market. The cryptocurrency price bars are below the moving averages, indicating a price decline. LINK is below the 20% area of the daily stochastic. The daily stochastic indicates that Chainlink is already oversold.

Technical indicators:  

Major Resistance Levels - $30 and $35

Major Support Levels - $20 and $15

What is the next move for Chainlink?

Chainlink is in a downtrend as the price has regained the previous low. The cryptocurrency has reached its bearish exhaustion as it has fallen into the oversold zone. Meanwhile, on May 11 downtrend, a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that LINK will fall to the level of the Fibonacci extension of 1.272 or $4.84. From the price action, Chainlink retested the Fibonacci extension and reversed.

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.