- Chainlink bulls are working tooth and nail to build onto the initial support at $15.
- LINK/USD is not out of danger yet and could plunge to $10.00, especially if supports at $14 and $12 are broken.
Chainlink has continued to suffer declines this week after hitting new all-time highs around $20 last week. The retreat is mainly technical following a massive rally from the first week of August. LINK/USD hit overbought levels between August 13 and August 17. The hunt for support has not been easy considering that tentative levels around $18 and $16 failed to hold the price.
At the time of writing, LINK/USD has extended the bearish action to test confluence support formed by the 100 SMA in the 4-hour range and the 50% Fibonacci level taken between the last drop from $20 to a low at $9.15. Chainlink bulls are struggling to build up the momentum above the initial support at $15.
Chainlink is trading at $15.39 while facing immediate resistance at the descending trendline. The 61.8% Fibo is also standing in the way upward movement. From a technical point, LINK is mainly in the hands of the bears. The Elliot Wave Oscillator is currently printing a bearish session. The same bearish grip is illustrated by the RSI as it reaches closer to the oversold region.
If both the confluence support mentioned above and the support at $14 fail to hold, we can expect the price to spiral farther down. More tentative buyer congestion is observed at $12 while $10 is the primary support.
LINK/USD 4-hour chart
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