Chainlink Will Further Decline as It Faces Rejection at $7.50

Chainlink (LINK) is in a downtrend due to its recent collapse on November 9. The altcoin fell to a low of $5.77, but the bulls bought the dips. The cryptocurrency corrected upward to a high of $7.50 on November 10.

This correction did not hold. As the altcoin diverges from moving average lines, further price gains are unlikely. Moreover, the correction predicts that Chainlink will fall even further, to a low of $3.75. The price of LINK will fall below its previous low of $5.31.

Chainlink indicator reading

The Relative Strength Index for Chainlink is 41 for the period 14. The altcoin is currently in a bearish trend zone and could fall further. The sideways movement is accompanied by a horizontal slope of the moving average lines. A further decline is indicated by the price bars being below the moving average lines. As the daily stochastic is below the 20 level, the market has entered the oversold zone.

Technical indicators:  

Major Resistance Levels – $30 and $35

Major Support Levels – $10 and $5

What is the next move for Chainlink?

Chainlink has abruptly dropped below the moving averages lines. The altcoin’s upward correction was staved off. Chainlink performed an upward correction during the decline that started on November 9, and a candlestick tested the 61.8% Fibonacci retracement level. According to the corrections, LINK will fall to the 1.618 Fibonacci extension level, or $3.75.

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.