- The price of the LINK token is trading in a small, tight range on a daily time frame and has recently attempted to break out of the supply zone.
- The price of the LINK token is forming a double dip pattern on a daily timeframe.
- The LINK/BTC pair is trading at a price of 0.000297 with an increase of 0.48% in the last 24 hours.
The price of the LINK token follows the general upward trend in the cryptocurrency market over the past 72 hours. As a result, the token hit the supply zone after bouncing off the demand zone. Right now, the price of the LINK token is hovering around the $7.70 supply zone. Although the token started falling again from the supply zone, it formed a large bearish candlestick pattern.
LINK token price is currently trading below all vital moving averages of 59 and 100. On the upside, LINK token price may be rejected which may lead to a sudden drop. The token gave a false breakout of 50 MA due to strong bullish momentum, but it failed to continue the trend as the price of the token is again trading below the 50 moving average. The price of the LINK token is trading in the middle of the Bollinger Band indicator after facing rejection from the upper band. Volumes increased leading to an increase in volatility which led to the sudden rejection of the supply zone. Investors should wait for a clear breakout and retest the small range before acting.
MACD and SUPERTREND show bearish signs on the daily timeframe as the token faces rejection outside the supply zone
The price of the LINK token is trading below the supply zone in a small range. The symbolic price forms a bearish flag and a pole pattern on an hourly time frame.
Moving average convergence divergence: The MACD indicator is bearish as seen on the chart. As the token faced rejection from the $7.7 supply zone, the token fell sharply, leading the MACD to give a negative crossover. The MACD indicator turned negative when the orange line crossed the blue line on the upside, indicating short-term bearish momentum.
Supertrend: The price of the LINK token is trading in a bearish trajectory. The token started forming lower lows and lower highs on an hourly timeframe, which resulted in the formation of the bearish flag and pole pattern. The super trend indicator gave a sell signal as soon as the price of the LINK token crossed the buy line. Going forward, the price of the LINK token may face rejections from the supply zone.
RSI and ADX are on a sideways trajectory as the price of the token stops, what is the next step for the LINK token?
The price of the LINK token is forming a double-dip pattern on the daily time frame, as seen in the price action. But it remains to be seen whether the token breaks the supply zone or falls back.
Average Directional Movement Index: ADX has been falling for the past 24 hours as the token was rejected in the $7.70 supply zone. At present, the price of the token has reversed and the ADX curve is following the trend. Recently, the ADX curve slipped below 25 as the token fell. If the price of the token breaks above the supply zone again, the ADX curve can be seen turning higher, supporting the uptrend.
Relative Strength Index: The RSI curve is trading at 53.70 as the token reached the supply zone. However, it has started to fall below again as the token does not show strength. The RSI curve has crossed halfway through the 50 mark, but for the price of the LINK token to rise, the RSI curve must hold above the 50 mark.
The price of the LINK token is trading in a small range, as seen on the daily chart. Technical parameters also turned sideways, outlining the trend. It remains to be seen whether the price of the LINK token breaks above the supply zone or faces rejection and falls back into the support zone.
SUPPORT: $6.0 and $6.5
RESISTANCE: $7.7 and $7.9
The views and opinions expressed by the author, or anyone named in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading crypto assets involves the risk of financial loss.