Chainlink Reaches Overbought Region as It Struggles Below the $6.94 High
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Chainlink (LINK) Long-Term Analysis: Ranging
Chainlink (LINK) is in a downtrend as it struggles below the $6.94 high. Since October 13 price slump, the cryptocurrency has been confined to trade below the moving average lines. Today, the upward move is facing resistance at the 21-day line SMA. On the upside, a rebound above the current support will catapult the coin above the moving average lines. The bullish momentum will extend and retest the $8.00 high. Conversely, if Chainlink turns down from the 21-day line SMA, it will decline to the previous low at $5.70 price level.
Chainlink (LINK) Indicator Analysis
Chainlink is at level 45 of the Relative Strength Index for period 14. It is trading in the downtrend zone and may fall. LINK is above the daily stochastic 75% region. It is in a bullish momentum and approaches the overbought territory. The overbought area will see the emergence of sellers. Price bars for LINK are below the moving average lines, indicating a price fall.
Technical indicators:
Major Resistance Levels – $18.00, $20.00, $22.00
Major Support Levels – $8.00, $6.00, $4.00
What Is the Next Direction for Chainlink (LINK)?
Chainlink is rising as it struggles below the $6.94 high. The current uptrend is doubtful as the cryptocurrency trades in the overbought region. The coin is likely to face rejection at the recent high.
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