Last Friday, after a significant correction of 13%, Chainlink (LINK) broke important support levels and worried analysts and investors. So, what will happen next for Chainlink? While Bitcoin’s price struggles below $70,000, what do the technical indicators suggest?
Downtrend in LINK
LINK’s price entered a downtrend after a 13% correction on Friday. LINK broke important support levels at $17.40, corresponding to the 100 EMA on the 4-hour chart. The cryptocurrency’s volume profile peaks at the $16.70 level.
The price also entered the bullish zone corresponding to the 200 EMA on the 4-hour chart. The specified area is fixed at the $16.70 volume profile peak. The $16.70 and $18.00 price levels remain strong resistance points for the cryptocurrency. LINK may struggle to surpass these levels. According to experts, the most important support levels to watch at this price level are $15.60 and $14.30.
These levels may correspond to the significant flat lines of the Ichimoku Cloud on the 4-hour timeframe. They provide important potential support areas amidst the current downtrend. In the daily price action, Chainlink’s entry into the Ichimoku Cloud may signal a bearish trend. The relative strength index (RSI) also significantly dropped from 70 to 43 within this timeframe.
Price Prediction for LINK
LINK currently finds strong support at the 200-day exponential moving average. Such a move could allow the price to directly progress to the lower boundary of the Ichimoku Cloud on the daily timeframe, approximately at $14.30. This $14.30 level is a critical support point, and continuing towards this level may indicate a downtrend.
If the price breaks this level and surpasses the $15.60 support level, LINK may show a very bearish trend. The medium-term resistance level is in the price range of $16.30 – $16.50 at the daily 50 EMA and 100 EMA. If the altcoin‘s price rises above these 50 and 100 EMA levels, it could present an optimistic technical scenario for LINK and potentially push LINK above the Ichimoku Cloud, which would be a positive bullish signal for the medium-term outlook.
