Chainlink Bulls Must Overcome Major Hurdles for Potential 7% Rally

Chainlink price has been trying to reverse its recent losses over the past few weeks. Currently, Chainlink is trading under a key resistance mark, which has caused the altcoin to face rejection.

In the last 24 hours, Chainlink has only managed to appreciate by 0.4%, indicating that it is consolidating. On the weekly chart, LINK is already up 1.8%. Due to the continued price consolidation the bears will completely capture the price.

The technical outlook for altcoins is also in favor of the bears as the purchasing power is showing signs of struggle. Hence both demand and accumulation remain down on the charts. As bitcoin trades inside the $27,000 price area, major altcoins are also trying to move north on their respective charts.

If bitcoin fails to consolidate above the $27,500 price point, sellers could exert further pressure on Chainlink, sending the price further down. Chainlink’s market capitalization declined, indicating that buying power remained low at press time.

Chainlink Price Analysis: One Day Chart

At the time of writing, Chainlink (LINK) was trading at $6.60. However, this price level has proven to strongly oppose altcoins. Despite this, the bulls have managed to prevent further downside in the price. The overhead resistance for LINK is currently set at $6.80.

LINK has been trading between $6.20 and $6.80 in recent weeks. A break above the upper boundary of this trading range is crucial for the LINK bulls.

A failure to break the $6.80 resistance level will likely lead to bear dominance. If the price declines, an initial support is at $6.20.

Further downside could see LINK trading near the $6.00 price level. Chainlink saw a low trading volume in the previous session, indicating a limited number of buyers in the market.

technical analysis for links

Chainlink (LINK) faced difficulties in attracting buyers during May and most of April. The Relative Strength Index (RSI) continues to remain below the 50-level, suggesting that buyers have lost interest in LINK due to the recent price rejection.

Additionally, LINK has dropped below the 20-simple moving average (SMA) line to indicate that sellers are driving the price momentum in the market.

To regain the bullish momentum, a move above the $6.60 level is crucial for LINK, which will enable the altcoin to trade above the 20-SMA line.

Unlike other technical indicators, Chainlink (LINK) demonstrated the emergence of a buy signal on the daily chart. The moving average convergence divergence (MACD) showed the formation of a green colored histogram, indicating the possibility of a bullish momentum development.

Additionally, the Chaikin Money Flow (CMF), which measures capital inflows, displayed a positive reading as it moved above the halfway line. These indicators indicate a possible change in market sentiment, with buying interest and inflows into LINK.

Featured images from SoFi, charts from TradingView.com