- LINK/USD currently trades around $20
- After a rejection yesterday, Chainlink continues moving lower
- Strong support still around $18
Cryptocurrency heat map by Coin360
The Analyst still believes that LINK/USD will reach $18 support in the upcoming week. As described in yesterday’s Chainlink price prediction, the $18 level should provide a lot of support as there are several technical confluences around it. To remind, the 50 percent Fibonacci retracement level is located just below, and the 50 period moving average red line is still moving towards this level.
If the $18 support level cannot hold, Chainlink should see a retracement towards $15 in the upcoming weeks. The 15$ support is also a key level to watch as it has acted both as a support and resistance.
During the past 24 hours, LINK has lost 6 percent, with a volume of $4.8 billion. Chainlink continued to range after the open as it likely prepares for further downside. Yesterday, several rejection candles were formed and confirmed. Therefore, the current short-term bearish momentum was expected.
Chainlink price chart by TradingView
As mentioned, Chainlink has had a very strong week overall. However, when looking at the 4-hour chart, a slow but sure retracement is seen from the current yearly high of $23.1.
The target to watch for right now is the $18 support. Until LINK retests the $18 support level, traders should stay on the sidelines and wait for further price action development. The risk of entering another long position would not outweigh the reward as Chainlink has already gained more than 80 percent since the 11th of January.
As the momentum for Chainlink has slowed down, the Analyst expects no further trading opportunity next week. Most likely, LINK will spend several days in a slow retracement.
Another technical level to watch is the several week ascending trend line. It has supported the LINK/USD mid-term trend several times. Chainlink had a strong rejection from the trendline on the 11th and 12th of January. Therefore, we can expect this to continue. However, it would also mean that Chainlink will spend the upcoming weeks in a retracement as the trendline is relatively far away from the current price action.
Another move higher is still a strong possibility. As mentioned, it is not worth chasing the final push to the upside as the risk/reward is simply not there.
Therefore, the price prediction for Chainlink is still the same – traders should stay on the sideline and see how the price action develops.
A key support area to watch are the $18 and $15 as both of them have previously reversed LINK in a clear way. The best entry would be from the $15 support as it would offer the best risk/reward. However, if the level breaks, a much larger reversal will likely be seen over the upcoming weeks.
If LINK/USD can show clear signs of reversal around the $18 support area, a long position could be made from there. However, it would be best not to rush into a position around this area. The best would be to wait for a consolidation around it, which would allow the moving averages to catch up and offer some additional support.
Additionally, check out our Chainlink price index section as it offers a real-time chart, price details, sentiment analysis, and signals.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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