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29 September 2023
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Chainlink Technical Analysis: LINK/USD Tumbles To $15 After Forceful Rejection From $20

  • LINK/USD tumbles from the recently traded all-time high to test support at the 38.2% Fibonacci level ($15).
  • LINK/USD likely to settle for consolidation as the RSI moves horizontally around 44.

Chainlink made a remarkable move this month, trading new all-time highs at $20. Unfortunately, the bulls lacked the momentum to sustain gains above this level, leaving LINK open to devouring by the bears. A reversal occurred on Tuesday, sending LINK downward within a descending channel. Fortunately, buyer congestion at the 38.2% Fibonacci level, of the last swing high at $20.17 to a swing low at $12.09 put a stop to the declines around $15.

At the time of writing, LINK is teetering at $16.35 while struggling to hold above a newly established short term support at the 50% Fibo. Glancing upwards, the fifth-largest crypto will encounter more hurdles at $17 (61.8% Fibonacci level), the 100 Simple Moving Average (SMA) at $18 and the all-time high at $20. 

From a technical angle, Chainlink is likely to settle for consolidation under the resistance at $17. If support at $16 fails to hold, the recent buyer congestion zone at $15 will come in handy to ensure that no more damage is made to the accrued gains this month.

LINK/USD 1-hour chart

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LINK/USD price chart
LINK/USD price chart by Tradingview

To put that into perspective, the Relative Strength Index (RSI) is moving horizontally at 44. This follows a rejection from levels around 50. Recovery of the Moving Average Convergence Divergence (MACD) has stalled under the mean line.Advertisement

On the bright side, the presence of a minor bullish divergence above the MACD hints that buying pressure is present. However, the buying activities are not strong enough to keep the price moving towards $20, at least for now. Therefore, consolidation is the most probable action for LINK/USD in the short term.

LINK Intraday Levels

Spot rate: $16.20

Relative change: 0.0178

Percentage change: 0.21%

Trend: Consolidation to take precedence

Volatility: Low

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