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Chainlink (LINK) is in a downtrend. Today, the altcoin has fallen to a low of $16.02. On May 23, Chainlink hit the low of $15.04 as bulls bought the dips. In this price action, the crypto rallied to $35 high, but was resisted.
The cryptocurrency would have come out of the downtrend zone if it had rallied above $43. The rejection at $35 forced the altcoin to resume selling pressure. Today, LINK /USD is likely to hit the previous low at $15.04. Further selling is expected if the previous low is broken. However, the cryptocurrency seems to be reaching the oversold area of the market. It is likely that the selling pressure will subside. Still, further downside is unlikely as buyers are likely to show up.
Chainlink indicator reading
The altcoin is below the 20% area on the daily stochastic. This indicates that Chainlink is in oversold territory. It is likely that buyers will emerge in the oversold region. LINK is at level 35 of Relative Strength index period 14. It indicates that the market is approaching the oversold region.
Technical indicators:
Major Resistance Levels - $55 and $60
Major Support Levels - $20 and $15
What's the next move for Chainlink?
Chainklink has fallen to the previous low at $16 as sellers threaten to push prices lower. On May 19 downtrend; a retraced candlestick tested the 61.8% Fibonacci retracement level. This retracement implies that the market will fall to the 1.618 Fibonacci extension level or the $5.75 low.
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.