Chainlink finds likely support, LINK to resume rise to $50
- Chainlink price drops below the bear flag, signaling an attempt by bears to take over.
- Short-sellers attempt to breach final strong support.
- Failure by bears to push Chainlink below the Cloud could confirm a bear trap.
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Chainlink price action faces increased profit-taking and broader market uncertainty. A drop below the bear flag has been halted at a strong support zone. A zone that must hold or Chainlink could face a swift descent to $20.
Chainlink price faces a battle between bears and bulls to determine the next trend
Chainlink price is pitted against a powerful inflection point at the $29 level. This is the final, primary support zone for Chainlink before a swift drop to the $20 value area would occur. However, any attempt to move below the $29 level should be challenging.
The 61.8% Fibonacci retracement, Senkou Span B and a high volume node share the $29 value area. Additionally, the oscillators confirm that support should be strong - and that a bullish reversal may be likely.
The Relative Strength Index is at the second oversold level in a bull market (40) while printing hidden bullish divergence. Likewise, the Composite Index has printed hidden bullish divergence at a historical support level. Finally, the Optex Bands oscillator adds to the likelihood of support holding because it is positioned at extreme oversold levels.
LINK/USDT Daily Ichimoku Chart
If Chainlink price holds above the Cloud, support is likely confirmed, and a new higher low is established. The march towards $50 will likely continue.
Traders will want to pay special attention to Chainlink price if it falls below the Cloud. In this scenario, a violent and fast drop could occur.
Author
Jonathan Morgan
Independent Analyst
Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.
