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Chainlink Price Consolidates, How Long Will The Bulls Stick Around?

30 Oct, 20223 min readDeFi
Chainlink Price Consolidates, How Long Will The Bulls Stick Around?

Chainlink price has been moving sideways over the past day. In the last 24 hours, the coin has only increased by 0.4%.

Broader market price sentiments have crept in and many major altcoins have followed suit. In the past week, Chainlink has gained close to 6%.

It continues to struggle within the $7 price zone. For the coin to see bullish force yet again, it is imperative that LINK travels above the $8 price level.

The technical outlook of LINK has also indicated that bullish strength has started to exit the market. Demand for the altcoin has fallen, which has caused sellers to increase in number.

Despite the recovery that Chainlink price registered in the past week, the coin has not experienced positive buying strength.

This emphasized that LINK has to move past its next resistance mark for demand to increase on the chart. If buying strength continues to remain low, Chainlink will soon visit its closest support level.

Currently, the altcoin is trading at an 86% low from its all-time high, which it secured in the month of May 2021.

Chainlink Price Analysis: One-Day Chart

LINK was trading at $7.14 at the time of writing. The altcoin has been moving sideways over the last 24 hours. This could prove difficult for the bulls as demand for the coin continues to decline.

Chainlink has to break past its overhead resistance of $7.36 and $7.71 to reclaim the $8 level. Once LINK starts to trade at the $8 level, the bullish momentum can re-enter the market.

Continued consolidation will cause Chainlink to move down to its local support line of $7 and then to $6.72. The coin might start to oscillate between these two levels if that happens.

The amount of Chainlink traded in the past session declined, which meant that sellers were back in the market.

Technical Analysis

Buying strength of Chainlink has consistently remained low for this month. The coin barely registered an increase in buying strength in the last several weeks.

The Relative Strength Index was below the half-line despite an uptick, which meant that sellers were still greater in number as compared to buyers.

Chainlink price was below the 20-SMA line as demand for the coin fell, and sellers were driving the price momentum in the market.

The other technical indicators, however, indicated that buyers could make a comeback. The chart displayed the buy signal for the altcoin.

Moving Average Convergence Divergence indicates the strength of the price momentum and the price direction of the altcoin.

The MACD underwent a bullish crossover and formed green histograms above the half-line, indicating that those were the buy signal for Chainlink.

If buyers act on it then the coin can have a chance to redeem its bullish price momentum. The Directional Movement Index also points at the price direction and the strength of the same.

DMI was negative as the -DI line was above the +DI line.

The Average Directional Index was below the 20-mark, which meant that the current price momentum lacked strength.

Featured Image From VOI, Charts From TradingView

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