Chainlink Risks Decline, Faces Rejection at $29 Resistance Zone

Chainlink (LINK) is in a downtrend as price falls below the moving averages. The cryptocurrency has fallen to a low of $25, but the market has risen to a high of $28.

As the altcoin rises, it could face resistance at the 50-day moving average. If this is the case, selling pressure will pick up again as the price regains the previous low at $0.21. On the other hand, if the price breaks above the moving averages, the cryptocurrency asset will rise and regain the previous high at $36. The resistance at $36 has not been broken since September. In the meantime, the altcoin is rising in the area of the downtrend.

Chainlink indicator reading

The cryptocurrency has fallen to the level 41 of the Relative Strength Index of the period 14. It is in the downtrend zone and below the midline 50. Chainlink is in a bullish momentum as it is above the 50% area of the daily stochastic. The price of the cryptocurrency is below the moving averages, which indicate further downward movement.

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. The price of LINK has fallen to a low of $26 and then corrected upward. The upward correction is rejected by the 21-day moving average line. Meanwhile, on November 10, a candlestick tested the 38.2% Fibonacci retracement level. The retracement suggests that LINK will fall to the 2.618 Fibonacci extension level or the high of $21.92. The price action shows that Chainlink fell to a low of $26 and then corrected higher.

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.