Chainlink Price Consolidation Continues: Will Bulls Soon Recover?

Chainlink price has been trading within a narrow range recently, which has reduced investor interest. However, in the past 24-hours, the altcoin managed to experience an increase of 1.5%, indicating a sideways movement.

On the weekly chart, LINK showed an upward movement of 4%. Despite these gains, technical analysis indicates that the bears are still in control of the price action. Both the Demand and Accumulation levels remain low, although there has been a slight increase in buying activity on the daily chart. However, the market is still dominated by sellers.

The drop in bitcoin price below $27,000 has created uncertainty among altcoins, preventing them from making a decisive move on their respective charts. After a period of consolidation, a breakout in price is possible.

While the technical outlook suggests bearish strength, there are also signs of a potential reversal. However, for LINK to start a price recovery, it will depend on the strength of the broader market, as indicated by the decline in LINK market capitalization, which reflects weak purchasing power.

Chainlink Price Analysis: Intraday

At the time of writing, LINK was priced at $6.78 as it attempted to break out of its sideways trading pattern, staying below its resistance at $6.90. A successful break above $6.90 could potentially trigger a rally towards $7.20.

Conversely, if the price turns down from the current levels, it could decline towards $6.30. A breach of the $6.30 support line could push the price below $6.

On the other hand, as long as LINK holds above the local support line at $6.60, it has the potential to continue its recovery on the charts. Chainlink traded positive volumes in the previous session, indicating that buyers are starting to re-emerge in the market.

technical analysis

After sustained selling pressure, LINK is now trying to attract buyers back into the market. The Relative Strength Index (RSI) is trending up, near the halfway point. However, at present, sellers still outnumber buyers.

Additionally, LINK is attempting to trade above the 20-Simple Moving Average (SMA) line, which indicates renewed demand in the market. Despite the coin’s recovery efforts, sellers still drive the overall price momentum.

A buy signal emerged as LINK price and buying strength aimed for recovery. The Moving Average Convergence Divergence (MACD), a tool that shows price momentum and potential trend reversals, forms a green signal bar aligned with a buy signal.

This indicated the possibility of a positive price movement. Additionally, the Bollinger Bands were wide and parallel, suggesting that the coin will attempt a breakout from its previous consolidated price action.

Featured images from Gadgets360, charts from TradingView.com