Over the past few days, the Chainlink price gained momentum. At the time of writing, however, it encountered selling pressure. The coin lost 0.7% of its value in the last 24 hours, indicating consolidation on the chart and erasing most of its gains from the past week.
The technical outlook showed that the bullish strength of the coin was weakening due to a decline in the number of buyers due to a decrease in demand and accumulation. Unless the demand remains positive, the coin may fall below its immediate support level, bringing in the bears.
However, if the demand remains positive, the bulls may attempt to increase the price. LINK has two crucial support levels. Its performance depends on the broader market strength, which has been uncertain as Bitcoin fluctuates above and below the $28,500 price mark, leading to confusion on most altcoin charts.
Chainlink Price Analysis: One-Day Chart
At the time of writing, LINK was trading at $7.20. Having recently appreciated above the $7 mark, the initial bullish trend was short-lived. The $7.20 level had acted as a strong resistance zone for the altcoin, thwarting every attempt by the bulls to push the price up.
The coin’s overhead resistance was $7.60, and breaking through it could take LINK to $8. However, the altcoin’s performance highly depends on its support levels, with the first being at $7.
Falling below this level would lead to further drops to $6.80 and then $6.40, both of which present buying opportunities for traders. In the last session, the amount of LINK traded was negative, indicating a rise in selling pressure.
Technical Analysis
Sellers are attempting to take over the price of LINK, leading to a dip in demand on the coin’s one-day chart. The Relative Strength Index has also fallen close to the half-line, indicating buyers are starting to exit the market. Further drops in demand may attract more sellers to the chart.
Additionally, the altcoin price has recently fallen below the 20-Simple Moving Average line, suggesting a depreciation in demand and indicating that sellers are driving the market momentum.
However, a slight push above the $7.20 mark could help LINK regain momentum and lift its price back above the 20-SMA line.
