Chainlink Reaches Oversold Region as It Holds above $6.40

Chainlink (LINK) Long-Term Analysis: Bearish
Chainlink (LINK) price is falling as it holds above $6.40. Since the cryptocurrency was rejected from the $8.00 resistance zone, it has been declining. A sector of the market where the coin is overbought is currently dropping. The failure of purchasers to break through the resistance region resulted in the decline. The value of the altcoin would have increased to $9.48 had the current resistance been broken. The moving average line and the $6.46 support may, however, be overtaken by the current selling push. The previous low of $5.70 is anticipated to be revisited by Chainlink. However, given that the market has reached oversold territory, further drop is improbable.

Chainlink (LINK) Indicator Analysis
The Relative Strength Index level for Chainlink for period 14 is 41. The altcoin is in a downtrend zone and could keep moving lower. LINK is below level 20 of the daily Stochastic. It suggests that the oversold area of the market has been reached. This downturn will soon come to an end.

 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 currently retracing to its prior low of $5.70 as it holds above $6.40. If sellers go below the $5.70 support, the LINK price will drop more. The LINK price reversed upward during the decline on November 9 and a candle body tested the 61.8% Fibonacci retracement level. According to the correction, LINK will drop to level 1.618 Fibonacci extension, or $3.81.

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