• Chainlink price has traded in a tight range the last two weeks.
  • Latest weekly volume is the lowest since June 2020.
  • The 10-week simple moving average (SMA) provides support through consolidation.

Chainlink price continues to travel in a sideways pattern after closing with a Doji candlestick two weeks ago and a mere 2.4% gain last week. Price action is reflecting an indecisive market that could be vulnerable to a notable change.

Chainlink price rises concerns among bulls

A Doji is a single candlestick pattern that resembles a cross because opening and closing prices are the same. It does indicate a market in balance between supply and demand, but it also warns traders that there is some uncertainty and indecisiveness.

Two weeks ago, LINK closed with a Doji pattern warning traders that the rebound off the February lows was exhausted and the probability of decline had shifted higher. Traders hate uncertainty, particularly in the context of an uptrend. They showed it last week as the altcoin gained a negligible 2.4%, where the weekly volume was the lowest since the week beginning June 29, 2020. 

As long as Chainlink price holds, the 10-week SMA traders should be looking for bullish outcomes from the current consolidation. A daily close above the high from two weeks ago at $32.00 will be the first step in restarting the rebound from the February low. The subsequent profit target is the all-time high at $36.92, generating a 28% gain from the current price level.

If volume re-enters the market, more generous profit targets are the 1.382 and 1.618 Fibonacci extension levels at $43.00 and $46.76, intersected by the topside trendline running from the 2019 high.

LINK/USD weekly chart

LINK/USD weekly chart

A move to the downside needs to hold the 10-week SMA at $27.94, or Chainlink price could collapse to the February low at $21.00 in quick fashion. 

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC’s Q3 close and what to expect in Q4?

Bitcoin Weekly Forecast: BTC’s Q3 close and what to expect in Q4?

Bitcoin price is trading above two crucial levels, suggesting a stable foothold. Combining this outlook with a bullish divergence signal, BTC holders should expect a favorable outcome. However, since the third quarter will end in a few hours, there is bound to be abnormal volatility in the market, which could trigger massive moves in either direction, so investors need to be cautious. 

More Bitcoin news

Shiba Inu price: Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shiba Inu price: Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shytoshi Kusama, the project lead for Shiba Inu, has dropped a teaser about Shiba Eternity for the SHIB community. Proponents expect the launch of the collectible card game to be a bullish catalyst for SHIB.

More Shiba Inu News

Staking is coming to Chainlink this December as LINK price stands firm

Staking is coming to Chainlink this December as LINK price stands firm

LINK is trying to find its feet in the wake of declines that followed its rejection from resistance at $8.40. Bulls have managed to sustain a generally up-trending market and Chainlink is up nearly 17.50% from its September low at $6.56.

More Chainlink News

Ethereum Classic bulls take charge, a retest of $30 on the cards

Ethereum Classic bulls take charge, a retest of $30 on the cards

Ethereum Classic price ranges with no directional bias in sight. This trend could continue unless Bitcoin decides to do something. Regardless, investors should prepare for a minor downtrend before ETC rallies. 

More Ethereum Classic news

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin: BTC’s Q3 close and what to expect in Q4?

Bitcoin price has developed a bullish divergence with RSI, hinting at more upside. Despite the optimistic technicals, investors should expect volatile swings before the end of the third quarter of 2022. 

Read full analysis

BTC

ETH

XRP