CHAIN LINK token price analysis: LINK token price is resting at the long term support zone, will it bounce back?

• LINK token price is forming a falling wedge pattern on the daily timeframe, and currently, it is resting at the long-term demand zone.
• The token is forming a symmetrical triangle pattern on an hourly time frame.
• The pair of LINK/BTC is trading at 0.0003179 with a decrease of -1.67% in the market cap of the digital asset over the past 24 hours.

LINK token’s price is in a strong downtrend after breaking down the long-term demand zone at $11.23 and now it is acting as a strong supply zone in a broader time frame. There seems hope for recovery in the token as it is resting at the long-term important demand zone of $5.80. The token has started forming lower low and lower thigh formation on a daily time frame. The token fell after facing rejection at 50 and 100 EMA, and currently, it is trading below the vital 50 and 100 EMA. LINK token price is presently at 20 EMA after the fake breakout of 50 EMA. The token is trading in the middle of the Bollinger band indicator after failing to surpass the upper band of the Bollinger band indicator. Investors should be cautious and not take a long position until the $7.64 price level is not broken. Volumes have increased over the last trading days, causing volatility to increase, and thus investors should wait until the price settles and then take trades.

MACD and Supertrend are showing bearish signs in the daily time frame

As per the price action, the LINK token price is bearish as the token broke off the long-term demand zone. The technical parameters suggest the same.

Supertrend: Recent bearishness in the price of the LINK token led to the Supertrend indicator’s breakdown at $11.23, and the supertrend gave a sell signal. The token is currently trading below the supertrend line, acting as resistance. If the token bounces off the long-term demand zone, there can be a bullish movement in the digital asset price. If the token cannot sustain the above long-term demand zone, it can continue the bearish trend that can push the price down to $5.27.

Moving Average Convergence Divergence (Bullish): MACD indicates a bullish trend on the daily time frame as it gave a positive crossover, despite the token breaking down the demand zone. The buyer’s signal line(blue) crossed the seller’s signal line (orange) on the downside, indicating a possible breakdown of the long-term demand zone at $5.30, which can push the token price up to $5.20 with strong momentum. The Orange line jumped off the clue line, indicating a possible bearish momentum for upcoming days.

LINK token price is forming a symmetrical triangle pattern on the hourly time frame

LINK token price is in a downtrend after facing rejection at the supply zone, and currently, it is resting at the long-term demand zone. The token is forming a symmetrical triangle as it is making higher lows and is facing rejection from the previous supply zone.

Average Directional Movement Index: ADX has been continuously dipping over the past trading days, and recently, it slipped below 20, as the token faced rejection at $9.52-11.23. The ADX curve is seen recovering, and it has turned upwards at present. Thus indicating a halt in the movement of the price and possible change in the structure of the price movement.

Relative Strength Indicator: RSI is trading at 46.13 as the token forms a bullish reversal pattern on a daily time frame. The RSI curve is nearing the 50 halfway mark, and thus once it crosses the 50 mark, the token can be seen moving up, possibly giving a breakout of the falling wedge pattern. The RSI curve has also neared the 50 SMA, indicating a bullish momentum for the upcoming trading days if it breaks above it.

Conclusion 

LINK token price, as per the price action, is showing neutral signs, and the technical parameters are suggesting the same. It remains to see if the token breaks above the long-term supply zone of $11.23 and moves above it or faces rejection and again falls.

SUPPORT: $5.80 and $5.50

RESISTANCE: $9.58 and $11.23

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only and do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.