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Chainlink Price Analysis: LINK stuck in tight range at $20, downside could follow

Analytics

www.cryptopolitan.com 07 December 2021 04:38, UTC
  
Reading time: ~2 m

  • Chainlink price analysis is bearish today.
  • LINK/USD retraced to $21 Yesterday.
  • Another test of downside is currently in progress.

The value of Chainlink is expected to proceed toward another test of downside later in the day, as selling pressure has returned after resistance was discovered at $21 late yesterday. As a result, we anticipate LINK/USD to fall towards another test of the downside later today.

Chainlink Price Analysis: LINK stuck in tight range at $20, downside could follow 1
Cryptocurrency heat map. Source: Coin360

Updates from the daily Coin360 heatmap shows the entire cryptocurrency market is trading in the green zone. Bitcoin and Ethereum have gained 3.61 and 4.23 percent respectively. Avalanche and Binance Coin are the best gainers with a 24-hour positive change of 9.71 and 7.67 percent respectively. 

Chainlink price movement in the last 24 hours: Chainlink unable to cross the $21 mark

Last 24 hours, the LINK/USD pair has been trading in a tight range between $19.72 and $20.20, which indicates extremely low volatility over the last day or two. Trading volume has dropped by 39.8 percent to $1.29 billion, leaving the market capitalization at around $9.3 billion, putting it in the top 10 list of cryptocurrencies by market cap.

LINK/USD 4-hour chart: LINK starts to decline again

On the 4-hour chart, we see Chainlink price moving lower gently after resistance was broken at $21 as bears look to test the downside once again.

Chainlink Price Analysis: LINK stuck in tight range at $20, downside could follow 2
LINK/USD 4-hour chart. Source: TradingView

The price of Chainlink has been steadily declining for the past several weeks, with the November low of $23. From there, LINK/USD retreated and made a lower high at $27 on December 1.

The market recovered from the Bears’ assault over the next several days. On Thursday, a large selling began late in the day, and by Friday night, the price had dropped by 35%. The value of LINK/USD plummeted until it hit $17.

Higher rejection levels have been observed throughout the day, with a 25 percent rebound seen in the hours that followed. Resistance emerged at $21 by midnight, producing bearish momentum over the remainder of the night.

Chainlink Price Analysis: Conclusion

Today’s Chainlink price analysis is bearish, as we anticipate the downside to be checked once again after a fast retracement to the $21 mark, where resistance was encountered. Before more upside can be recovered, likely LINK/USD must establish a higher low.

While waiting for Chainlink to move further, see our articles on How to mine Monero, XRP vs BTC, and DeFi Wallet Review.


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