Chainlink Price Analysis: This Dip has Discounted the LINK token By Over 33%; Should You Buy Now?

The technical chart indicates the overall trend for Chainlink tokens is still sideways. The token price was recently rejected from the $28.7 resistance, which initiated a minor pullback. The price is currently hovering above the $16.7 support, looking for enough demand pressure.

Key technical points:

• The 4-hour-MACD indicator show a bearish crossover of the MACD and Signal line
• The intraday trading volume in the LINK token is $1.53 Billion, indicating a 164.3% gain.

Source- Tradingview

In our previous coverage of Chainlink technical analysis, the token price was riding a recovery rally during the first half of January. The price made it to the $28.7 mark, where the intense selling pressure immediately rejected the price by forming an evening star candle pattern.

The LINK/USD pair started to drop again and breached the $20 support level. The price is currently trading at the $22.03 mark, indicating a 33.4% loss from the last swing high($28.7).

The Longer SMA lines 100 and 200 have fallen due to the sideways trend in LINK token price. However, the token price is currently trading below 200 SMA, indicate a bearish outlook for LINK token.

The daily-Relative Strength index(35) slops shows a sudden dip approaching the oversold zone. 

LINk Token Chart In 4-hour Time Frame?

Source-Tradingview

The V-Top bearish reversal in the LINK token price has recently dropped below the 20 support, threatening even more correction in the price. If the price could sustain below this flipped resistance, the coin is mostly likely to drop to the $16.7 support. 

The crypto traders should keep a close eye at this support as it has previously supported the last swing low to initiate a recovery rally.

The Moving average convergence divergence shows the MACD and signal line provides a bearish crossover below the neutral zone, accentuate a bearish momentum in the price.

• Resistance levels- $20, $23.5
• Support levels are $16.6 and $13.5.