Chainlink Price Movement Analysis for 21st May, 2021

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Chainlink and its oracles drew a lot of interest between 2020 and 2021. This reputation has aided in fueling bullish interest in the Connection market, with the asset’s price rising by 164 percent since the beginning of the year.

When bearish market volatility hit the LINK market, its value dropped by 47%. LINK was priced at $28.85 at the time of publication, with a market capitalisation of about $12.46 billion.

 

Chainlink daily chart

According to Chainlink’s daily tracker, the price has been trending lower since early May. The downtrend was only exacerbated by the drop in the Bitcoin market, following which the commodity attempted to rebound. Despite the fact that the longest red wick on the chart indicated that the low during the fall was at $18.56, LINK’s market soon rebounded and its value was forced up above the $28 mark.

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If the project advances in the crypto-space, LINK’s market continues to exhibit pronounced bearish overtones, which could lead the asset to challenge the support level at $23.05 once more.

 

Reasoning

Volatility was on the rise, according to market forecasts, and it was not going anywhere anytime soon. This put LINK in a precarious position because the asset’s price was still struggling to recover from its most recent drop. As bearishness prevails, considerable volatility can send the LINK token to the support stage. According to the Signal line, the market was already trending lower, and a sudden sell-off may result in a drop of nearly 17%.

In the opposite, the market’s selling pressure has been dominant. The Relative Strength Index slipped from the overbought to the oversold level, emphasising this. When the market fell, so did the selling pressure, as many dealers decided to cash in on their earnings before the crash. As a result, the commodity moved dangerously close to the oversold territory.

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Finally, the capital that had stayed in the market for too long as a result of the rising price was reaching the 0-level and could sink below it. According to the Chaikin Money Flow, LINK’s market has seen more money join it since the high. However, after the crash and eventual cash-out, capital was seen exiting the economy at a rapid pace.

Crucial levels to watch out for

Entry-level: $28.01
Take Profit: $23.13
Stop-level: $30.98
Risk to Reward: 1.64

Conclusion

Though Chainlink’s press time demand had improved, the outlook remained bleak. As selling pressure stayed strong, LINK’s market indicators indicated that the market would take another hit in the long run. This might cause LINK to stall at the next support level of $23, and traders should exercise caution.

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