LINK / USD could fall towards $ 21 if the bulls fail to keep prices around the $25 support area.
The price of Chainlink has rebounded in a wide range between $ 26.96 and $ 25.22 since a drop of more than 12% on Tuesday. The price of the cryptocurrency is 3.7% and 0.7% in the red in the last 24 hours and on the weekly time frame, illustrating the recent struggles.
In the short term, LINK’s price may first seek support at lower levels before rebounding to recent highs.
At the time of writing, the 15th-ranked token is hovering around $ 25.40, with signs of weakness among buyers. The price outlook for the token also currently reflects widespread selling pressure in the crypto market, which could lead to further declines towards $21.
However, the price of LINK is up more than 40% in the last 30 days and more than 79% in the last year, highlighting the potential for price increases in the long term.
LINK price analysis
Buying pressure for Chainlink has waned as seen by the declining trading volume, suggesting that bearers may be taking the initiative and pushing prices lower. With major coins like Bitcoin, Ethereum and Cardano also falling in the last 24 hours, an injection of more pessimism could trigger a decline for LINK/USD.
4-hour LINK/USD chart. Source : TradingView
On the 4-hour chart, LINK’s price has stayed lodged below 100MA and 50MA for the past two days. The RSI is also at a new low point below 50, suggesting that the bears are likely to strengthen.
There is also a hint of bearish pennant formation, a continuation model whose validation could include a re-test of the Fibonacci retracement level of 0.618 of the $ 13.33 – $30.54 swing. The reload area is close to $ 23.97 on the 4-hour chart, with likely additional support at the Fib 0.5 level at $ 21.94, and then at the psychological level of $21.
If the bulls stem the fall and the price of Chainlink breaks up, there is a robust supply area around the $27 area. Here we find Fib level 0.786 ($26.86), 100MA ($26.90) and 50MA ($27.21) as potential rejection levels.