LINK / USD: Chainlink fighting below $ 4
Key resistance levels: $ 4, $ 4.5, $ 4.98
Key support levels: $ 3.47, $ 3, $ 2.63
Chainlink continues to trade sideways after hitting an 8-week high of $ 4.10 at the end of April. After that, the price fell to a two-week support at $ 3.47, before a small rebound.
Currently, the price of LINK is US $ 3.70 against the US dollar. From a short-term perspective, it remains stuck in a two-month upward channel, which suggests that the upward trend is still very valid on the 4-hour chart.
As can be seen above, LINK is moving towards channel support. It will resume the high, once the price respects this support. Otherwise, a break in the channel can trigger a massive drop in price.
What to expect from Chainlink against the dollar?
Chainlink has been trading in a narrow range between $ 3.47 and $ 4 for some time. In the event of a breakdown, your next sales target would be the $ 3 support. Below that, the support is $ 2.63, all marked in orange in the chart above.
A clear break above the $ 4 price level is likely to start a new round of purchases for Link. The following resistance to watch above is $ 4.5 and then $ 4.98.
Trading volume is currently on the downside. An increase in volume would indicate a continuation of trend for LINK. A reversal should be expected if the price and volume continue to decline.
LINK / BTC: price becomes weak as the chain approaches support
Key resistance levels: 45000 SAT, 52700 SAT, 55000 SAT
Key support levels: 37566 SAT, 33372 SAT, 30000 SAT
Against Bitcoin, Chainlink maintained a bearish range as the price fell from the channel’s resistance at 52700 SAT set on April 18. The price has now reached 41855 SAT after violating 50,000 SAT and 45,000 SAT.
Meanwhile, after gaining momentum in late 2019, Chainlink followed a high-top and low-top pattern – a bullish formation – within a channel. LINK exited the upstream channel, but failed after marking an annual high at 56660 SAT in early March.
As of now, Chainlink is looking for close support, as bears continue to drive prices down.
If the market can find support at the main level of 40000 SAT or perhaps the immediate green line of 37566 SAT (around the channel support), a quick recovery should be expected. It would be more devastating if the price falls below the channel.
What to expect from Chainlink against Bitcoin?
A quick recovery from the main levels mentioned above can bring the price back to 45000 SAT quickly. LINK may recover the April high of 52700 SAT, followed by 55000 SAT, around the channel’s resistance.
However, it may fall slightly to the second green level of 33372 SAT if the price continues to fall in intraday trading. The critical support to keep in mind after that is the 30000 SAT level.
Looking at the daily chart, sales volume is slowly decreasing to suggest that bears are getting weaker by the day. There is hope for bulls if Chainlink continues to respect the channel standard.