Chainlink Regains Bullish Momentum, Resumes Uptrend above $23 Support

Chainlink (LINK) is in a downtrend after dropping to the $23 low. The $23 low is considered an oversold area of the market.

Further downside is unlikely as the altcoin is trading in the oversold region. On the downside, if the selling pressure continues, Chainlink will retest the previous lows of $20 and $22. On the upside, a breakout above the $30 high will catapult the altcoin into the uptrend zone if Chainlink develops bullish momentum again. The market will rise to regain the previous high of $34.

Chainlink indicator reading

Chainlink has fallen to the 35 level on the Relative Strength Index for period 14. It indicates that the altcoin is approaching the oversold zone. It is below the centre line 50 and may continue to trend downward. The altcoin has fallen into the oversold area below the 20% area of the daily stochastic. This means that selling pressure is likely to ease. Buyers are likely to emerge in the oversold region.

Technical indicators:  

Major Resistance Levels – $55 and $60

Major Support Levels – $20 and $15

What is the next move for Chainlink?

Chainlink has been in a downtrend. The cryptocurrency has fallen into oversold territory. The downtrend is likely to end. Meanwhile, on November 18, the downtrend; a retracement candlestick tested the 78.6% Fibonacci retracement level. The retracement suggests that LINK will fall to the Fibonacci extension level of 1.618 or the high of $23.24. Price action shows that Chainlink has fallen and is testing the Fibonacci extension.

Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.