Chainlink (LINK) retraces after a passage under its bullish figure
The LINK price is moving between support at $ 8.75 and resistance at $ 13.10.
The course went under an ascending support line.
The price is probably in wave B of an ABC correction
The Trust Project is an international consortium of news organizations based on transparency standards.
The course Chainlink (LINK) is retracement since its rejection by a high resistance area.
Although it has gone under a short-term structure, price is expected to start rising soon, until it passes its current resistance zone.
The advance and then the rejection of LINK
Link’s price has been following a declining resistance line since August 17th. On October 8, it broke that line, before reaching a high of $ 13.05. It was rejected by resistance at $ 13.10 soon after, however, and has been in decline ever since.
The price is currently approaching the support area of $ 8.75. This zone corresponds to the fibonacci level 0.618 of the entire upward movement, and it should probably support the price.
Despite strong support near price, technical indicators in the daily timescale are firmly bearish. The RSI has declined below 50, the Stochastic Oscillator has generated a bearish cross, and the MACD is likely to fall below zero. These are signs of a downward trend.
Cryptocurrency trader @TradingTank shared a LINK chart. He says price will likely continue to decline after a failed break above a descending resistance line.
In the short-term six-hour chart, price has likely passed below an ascending support line, and is now declining.
As in the daily timescale, technical indicators are bearish. The RSI is below 50 and the MACD is below zero. No bullish divergence is present.
The two closest support areas are the fibonacci levels 0.618 and 0.786, located at $ 9.51 and $ 8.54 respectively. The $ 8.54 area coincides with the aforementioned support, so it’s more likely that this level will act as a bottom.