In the last 48 hours, the price of Chainlink (LINK) has turned positive as the bulls have crossed the 21-day line and the 50-day line SMAs. However, buyers fail to keep the price above the 50-day line SMA.
The altcoin has lost the opportunity for an upward momentum. LINK The price of the altcoin is declining and approaching the 21-day line SMA.
The cryptocurrency is likely to move between the moving average lines if the price finds support above the 21-day line SMA. If Chainlink falls below the 21-day line SMA, the downtrend will resume. If the 21-day line SMA provides support, the altcoin will be forced to move within the trading range. Meanwhile, LINK /USD is trading at $7.96 at the time of writing.
Key resistance levels - $55 and $60
Key support levels - $20 and $15
Chainlink is at level 49 on the Relative Strength Index for period 14, indicating that there is a balance between supply and demand. The price of the cryptocurrency is between the moving averages, which indicates a fluctuating price movement. LINK is below the 80% range of the daily stochastic. The altcoin is in a bearish momentum.
Chainlink is in an upward correction. The downtrend has eased after the May 12 price drop. The cryptocurrency has fallen back below the 50-day moving averages. Meanwhile, the May 12 downtrend has shown a candlestick body testing the 78.6% Fibonacci retracement level. The retracement suggests that LINK will fall to the level of the 1.272 Fibonacci extension, or $4.85. 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.