Chainlink Is Vulnerable Below the $21 Support; Can Bulls Defend the Current Low?

The price of Chainlink (LINK) is in a downtrend. Today, the price of LINK bounces lower and retests $21 support. Chainlink can fall lower if the bears break $21 level.

In the last price move, the bears were pushed back while the bulls bought the dips to drive the altcoin higher. The upside correction was short-lived as buyers encountered resistance at the recent high. Meanwhile, Chainlink is trading in a range between $21 and the $26 price level, and the bears might have an advantage over the bulls as the cryptocurrency is trading in the downtrend zone. The altcoin could fall to the low of $14 if the bears break the support at $21. Otherwise, the uptrend will resume. However, if the bulls break the high at $26 and maintain the upward momentum, LINK /USD will develop an upward momentum.

Chainlink indicator reading

The altcoin is at level 42 of the Relative Strength index of period 14, indicating that the price of LINK is in the downward zone and below the midline 50. The 21-day line SMA and the 50-day line SMA are downward sloping. The altcoin is below the 20% range of the daily stochastic. The altcoin has fallen into the oversold territory.

Technical indicators:

Major Resistance Levels - $55 and $60

Major Support Levels - $20 and $15

What is the next move for Chainlink?

LINK/USD is in a downtrend as it moves above $21 support. Meanwhile, on September 7, the downtrend has seen a retraced candle testing the 50% Fibonacci retracement level. The retracement suggests that Chainlink is likely to fall to the 2.0 Fibonacci extension level or the $11.88 level.

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.