Chainlink Price Movement Analysis for 20th March, 2021

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The Chainlink sector has largely remained untouched by the huge instability that has afflicted the altcoin and Bitcoin markets. This may be attributed to a lower association between BTC and Connection. However, the price of the altcoin has been going sideways for some time now, and with the lack of volatility, this pattern may continue.

Chainlink 1-hour chart

According to the above map, the price has been moving within the same narrow range. However, the Connection sector has benefited from this prolonged phase of consolidation. Now that the selling pressure has increased, the market trend can shift.

Reasoning

The Bollinger Bands had already converged, but due to the sudden selling pressure, the bands were now beginning to diverge. While the signal line persisted under the candlesticks, suggesting a bullish reign, this pattern could change.

The 50-day moving average was still below the candlesticks, suggesting that the price was rising. The difference between the candlesticks and the MA, on the other hand, was narrowing, suggesting that the price was now sloping down.

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As buyers entered the market, the Relative Strength Index, which was close to the overbought region, started to rise towards equilibrium. The current value of the RSI was 52, suggesting that buyers and sellers were matching the market’s trading pressure. This could cause LINK to remain at its current level and consolidate further.

The Awesome oscillator noticed that the market’s momentum was sufficient to keep the current process running. The war between the traders, on the other hand, could drive the digital asset in any direction.

Conclusion

At the time of publication, the Connection sector was in a period of consolidation. However, the coin has been relatively stable up to this point, so a dramatic shift in price might tip the market in favour of the bears or the bulls. Traders should keep an eye on the market because it can swing at any point in the short term.

 

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