ChainLink Price Analysis - LINK is Trading Sideways While Volatility Drops
- LINK’s volatility has been declining significantly for the past week
- Bulls have been unable to break above the daily 12-period EMA
- Trading volume has dropped immensely over the past 2 weeks
|⠀Key LINK resistance levels:||2.36, $2.37, $2.62, $2.79|
|⠀Key LINK support levels:||$2.20, $1.933, $1.76|
*Price at the time of writing
Like most altcoins, ChainLink has been slowing down considerably over the past few days. The trading volume has dropped significantly and continues dropping every single day. Unfortunately, the confidence of investors and traders has probably been shaken due to the recent flash crash of LINK on Binance.
The flash crash took LINK down to $0.0001 in less than one minute but LINK only lasted there for seconds before jumping back up. Flash crashes aren’t uncommon in the crypto market, but while they usually happen with low liquidity coins on unknown exchanges, this one happened on Binance, the most popular crypto exchange in the world.
ChainLink technical analysis
What has been going on?
LINK has been able to set a daily uptrend and even though the bulls were not able to break and close above the daily 12-period EMA, they are still in control of the uptrend. The daily MACD is looking for a bullish cross today or tomorrow, but could get stopped if the bears take over following Bitcoin’s double top.
LINK price short-term prediction: Bearish/Neutral
Although the bulls are still in control of the daily uptrend, there is definitely a lot of selling pressure mounting up right now. Bitcoin has just been rejected from an important resistance area, setting a daily double top formation. Most altcoins are currently simply following Bitcoin’s steps and ChainLink will most likely do the same.
The 4-hour chart hasn’t been as clear for ChainLink as others. Initially the digital asset managed to set a 4-hour uptrend, but lost it on March 22. The bulls managed to defend the $1.933 area and saw a significant 23% price surge up to $2.37. The last 4-hour high was set at $2.34, so it cannot be called a double top, but the bulls were still rejected significantly.
The bulls are now trying to defend the 26-period EMA on the 4-hour chart, a crucial support level as bulls do not have more support areas until $1.933.
Where is the resistance towards the upside?
The bulls are facing the daily 12-period EMA resistance ($2.36), which they have been unable to break for 3 days now. This is an important daily resistance level, but not the only releavnt resistance level.
On the 4-hour chart, LINK is facing resistance at $2.37 and $2.62. The next resistance would be at $2.75, which was set on March 13 right after the crash. The daily 26-period EMA resistance is also nearby at $2.79. After that point, however, the bulls are unlikely to face any significant resistance until well above $4.
What are the technical indicators showing?
Unlike most altcoins, the daily MACD hasn’t crossed in a bullish manner yet for LINK. The MACD will be looking for that cross today or tomorrow unless the bears can significantly change the daily trend. The daily RSI remains at only 39 points, but the most important indicators right now are the daily EMAs.
Until the bulls can break and close above these daily EMAs, the bears can still easily take over. The daily Momentum (10) is bullish but pretty much everything else is Neutral or Bearish. The RVI (Relative Volatility Index) has started to drop from 62.5 points to the current 59.
Previous LINK price analysis
At CoinCodex, we regularly publish price analysis articles focused on the top cryptocurrencies. Here's 3 of our most recent articles about the price of ChainLink: