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Chainlink Price Analysis: LINK/USD drifts to the lower border of the range; $16.00 stays unconquered

  • Chainlink (LINK) retreats from the local resistance, loses over 4% on a day-to-day basis.
  • The coin is range-bound as long as it stays below $16.00.

Chainlink (LINK) is the fifth-largest digital asset with the current market capitalization of $5.1 billion. The coin has lost over 3.8% of its value in the recent 24 hours amid the technical correction of the cryptocurrency market. LINK's average trading volume exceeded $1 billion, which is mostly in line with the long-term average. LINK/USD topped at $19.85 on August 16 and has been in decline ever since. The coin is the native cryptocurrency of a decentralized oracle network Chainlink that connects smart contract data with the real world.

LINK/USD: The technical picture

At the time of writing, LINK/USD is changing hands at $14.70. The coin's recovery is limited to psychological $15.00 reinforced by the upper line of the 1-hour Bollinger Band and 4-hour SMA50. Once it is out of the way, the upside is likely to gain traction with the next focus on $15.50 that served as an upper line of the consolidation channel on August 26 and 27. Also, it is reinforced by the middle line of the daily Bollinger BandThe next resistance is created by $16.00 with 4-hour SMA200 located marginally above this level.

LINK/USD 1-hour chart

On the long-term picture, LINK/USD is locked in a tight range with an upper boundary at $16.00  A sustainable move above this area is needed for the upside to gain traction with the next focus on $19.00 and the all-time high of $19.85. On the downside, the critical support comes at $13.00 (August 21 low).

LINK/USD daily chart

Author

Tanya Abrosimova

Tanya Abrosimova

Independent Analyst

 

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