Chainlink (LINK/USDT) Holds Above $16.53: A Bounce or Breakdown?
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The market for Chainlink against Tether has recently gone bearish after a sharp fall in value due to economic shocks and constant sell pressure that follows. At the moment, the pair appears to be testing a critical support with increasing downward pressure, as the pair’s price now operates under the cluster of the simple moving averages, with the short-term lines facing south.
However, the Stochastic RSI displays a waning selling pressure as the lines appear to be improving from the oversold region. Whether Chainlink should bounce or continue a downtrend depends on the outcome of the current tussle.
Currently, Chainlink trades at $17.10 with 2.5 million traded volume for the day.
Technical Indicators
Major Resistance Levels: $17.56, $20.06, and $21.07
Major Support Levels: $16.53, $16.00, and $15.00
Chainlink Technical Analysis
Technically, Chainlink against Tether on the daily timeframe appears to have broken below $17.56 recently and is now testing the current level. The price seems to be slightly below the moving averages despite the recent uptick in value. Meanwhile, the Stochastic RSI suggests the pair is currently bottomed, and the possibility of an upside may be possible if more bullish actions are recorded.
To this end, since the pair apparently hangs on a thread, a move above $17.56 would suggest recovery, while a move below $16.30 might indicate continuation of the bearish reign.
LINK Analysis: Ready for a Northbound Move?
Chainlink at the moment is on a corrective pullback, one that could spark a new rally. However, it appears that ascertaining where the token will bottom is the main issue, as different exchanges displayed several perspectives concerning Friday’s dip.
As it stands, what matters now is that the bulls can change the narrative; the price needs to get above the downtrend resistance line at $27.00 for this to happen. However, on the smaller timeframe, the possibility of another dip is likely, but regardless, the $13.20 needs to hold for a better structure to the north.
LINK/USDT Analysis: Overbought Condition Suggests Pullback
LINK/USDT on the 4-hour timeframe has experienced mixed sentiment with a correction phase after a sharp rise towards $17.03. However, the Stochastic RSI signals an extreme overbought condition, which may likely lead to a short-term pullback.
At the moment, the pair seems to be consolidating, with the price improving slightly towards the expanding moving averages, but the condition of the momentum oscillator suggests the current gain may be short-lived unless the price holds above $17.56, as the price could test a level lower than $16.30 soon.
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