đ Chainlink Faces Critical Support Levels
Last Friday, Chainlink (#LINK ) experienced a significant 13% correction that resulted in the cryptocurrency breaking key support levels, causing concern among analysts and investors. As Bitcoin grapples with prices below $70,000, market observers are keenly watching LINKâs technical indicators to understand the next potential moves.
đž What Are Technical Indicators Suggesting?
LINKâs price has entered a downtrend, breaking significant support at $17.40, which corresponds to the 100 EMA on the 4-hour chart. The volume profile currently peaks at $16.70. Despite entering the bullish zone at the 200 EMA on the 4-hour chart, the $16.70 and $18.00 levels pose strong resistance. Experts point to $15.60 and $14.30 as crucial support levels during this downward trajectory.
According to technical analysis, these support levels align with the Ichimoku Cloudâs significant flat lines on the 4-hour timeframe, indicating potential support zones. On a daily scale, the entry into the Ichimoku Cloud might signal a bearish trend, further supported by a relative strength index (RSI) drop from 70 to 43.
đž Where Does LINK Stand Now?
LINKâs current positioning finds strong support at the 200-day exponential moving average (EMA). Should the price touch the lower boundary of the Ichimoku Cloud on the daily timeframe, approximately at $14.30, it would indicate a critical support point. Breaching this level and falling past the $15.60 support could herald a very bearish trend for the cryptocurrency.
đž Key Takeaways:
â A break below $14.30 could signify a continued downtrend.
â Resistance levels of $16.30-$16.50 are crucial for a potential bullish reversal.
â The RSI dropping to 43 indicates weakening buying momentum.
If LINK surpasses the $16.30-$16.50 range, it could signal an optimistic technical outlook, possibly pushing the cryptocurrency above the Ichimoku Cloud, indicating a medium-term bullish trend
