Chainlink Faces Rejection at $7.23 High, May Resume Selling Pressure

The price of Chainlink (LINK) is in a downward correction as the altcoin faces another rejection at the 21-day line SMA. Since August 28, the price of LINK has been in an upward correction. The upward movement was terminated at the 21-day moving average line.

If buyers keep the price above the moving average lines, the altcoin will rise to the high of $9.50. Conversely, Chainlink will fall to the previous low of $6.20. However, if the bears break below the current support, the market will continue to fall to $5.70 or $5.40. In the meantime, Chainlink is trading at $6.85 at the time of writing. 

Chainlink indicator reading 

Chainlink is at level 44 on the Relative Strength Index for period 14. LINK is in a downtrend as it faces another rejection at the moving average lines. The price bars are below the moving average, indicating a further decline. The altcoin is below the 40% area of the daily stochastic. This indicates that the market is in a bearish momentum.

Technical indicators
Key Resistance Zones: $10, $12, $14
Key Support Zones: $9, $7, $5 

What is the next move for Chainlink? 

Chainlink is likely to see another decline as it faces rejection at the moving average lines. On the weekly chart, a candlestick tested the 78.6% Fibonacci retracement level on March 28. The retracement suggests that LINK will fall to the Fibonacci extension level of $1.272 or to $7.29.

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 in funds.

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