Chainlink is Stuck in a Range as Buyers and Sellers Contemplate Next Move

Last week, the price of Chainlink (LINK) moved in a range between $18 and $23. Today, buyers are driving the price of LINK to retest resistance at $23.

If buyers break through the current resistance, the market will rise to the next resistance at $27. Chainlink will then be out of the downward correction. However, if the uptrend stalls at $23, the move will resume within the trading range. If the bears break support at $18, the market will fall to a low of $15. Meanwhile, LINK/USD is trading at $19.21 as of press time. 

Chainlink indicator reading

The Chainlink indicator is at level 34 of the Relative Strength Index for period 14. It is in the downtrend area and below the midline 50. The cryptocurrency price is below the moving averages, indicating a possible decline in the cryptocurrency. Chainlink is above the 30% area of the daily stochastic. This suggests that the market has resumed its bullish momentum.

Technical indicators:  

Major Resistance Levels - $55 and $60

Major Support Levels - $20 and $15

What is the next move for Chainlink?

Chainlink is moving in a tight range. The altcoin is yet to show a trend as bulls and bears battle for price control. Meanwhile, a downtrend started on November 27. A retracement candlestick tested the 78.6% Fibonacci retracement level. The retracement suggests that LINK will fall to the Fibonacci extension level of 1.272 or the high of $18.59. The price action shows that the altcoin is testing the Fibonacci extension.

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.