- Chainlink has hit a curb with two levels that seem to be too hard to get through.
- Sellers look to seize control of Chainlink's price action.
- Two short-term levels can provide support before opening a downside potential of 20%.
Chainlink price (LINK) attempted to take a stab at $38.40, but the price action faded after that failed attempt. LINK could not get there as sellers flocked in to push price action further down on the ascending green trend line. Next to that, the monthly R2 resistance level at $36 also added its weight to a muted upside as price action today cannot stay or even get above that level. Sellers look to be in control here.
On the downside, the first port of call will be $32.98, originating from the double top on June 1. This level has not shown its importance and has not been appropriately tested. The first test today by the sellers will be necessary for Chainlink. A break below opens the door to the next leg lower at $30.21.
Chainlink goes to $25
These two levels, $32.98 and $30.21, act as fail-safes and keep Chainlink observers in tune to their buying appetites. The trend reversal looks heavy, and support does not show that it will put up a fight. Sellers look to take over the price action in LINK.
A break below $30.21 would then mean that sellers have a free card to go to $24.56. This would wipe out all the gains in LINK since September 1. That was when sentiment in cryptocurrencies resurged and caused a favorable tailwind in the asset.
The only item stopping sellers from dipping 20% after $30.21 is the 200-day Simple Moving Average (SMA). That SMA coming in at $28 could give some intermediate support as it acted as a launch path for further upside on September 2. The 200-day SMA could thus be the first point of interest for buyers to get back into LINK.
Further down, it will be the fundamental $24.56 level from August 1 that will act as the supportive floor. Additionally, just a few ticks below the 55-day SMA is coming into the mix. Buyers will have two reasons to enter Chainlink here, which should do the trick to halt the seller's push.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.