Chainlink Price Analysis: The LINK Token Hints At A Bear Trap In Its Technical Chart
The technical chart of LINK token indicated the price would extend its correction phase when the price breached the $21.5 support; however, the intense buying pressure pushed the price back above this level, projecting a fakeout.
Key technical points:
- The LINK price obtains strong resistance from the 20-EMA line
- The intraday trading volume in the LINK token is $1.71Billion, indicating a 48.4% loss
Source- LINK/USD chart by Tradingview
The LINK token chart displayed an impressive recovery phase in October, trying its best to continue the uptrend. However, the token price could never pass the previous swing high resistance around $35.5 and entered another retracement phase.
The token price started dropping lower and ended up losing 50% in almost one month. Moreover, on December 4th, the intense selling pressure across the crypto market helped the token breach a strong support level of $21, which was also the previous higher low. ,
The crucial EMA levels(20, 50, 100, and 200) maintain a bearish sentiment of this LINK since its price is trading below the trend defining 100 and 200 EMA. Moreover, the 20 EMA provides strong dynamic resistance from this token, interrupting all the previous attempts to rally again.
The Relative Strength Index(43) indicates a bearish sentiment as its line moves below the neutral zone.
LINK/USD 4-hour Time Frame Chart
Source- LINK/USD chart by Tradingview
The LINK token tried to sustain below the $21.5 mark in order to confirm this breakdown. However, today the price showed a strong bullish candle around +6.45% and jumped above this new resistance level, indicating a fakeout.
The crypto traders should wait for the daily candle closing above this level which will provide a better understanding for token’s further move.
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