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Chainlink [LINK] had a market capitalisation of $11.14 billion and was trading at $26.58 at the time of publication. Despite the fact that altcoin was forced out of CoinMarketCap’s top ten ranking of cryptocurrencies due to its shrinking market cap, it was still delivering good returns to investors.
According to data, LINK has grown by 108 percent year to date and is currently grappling with a dull market movement with the bears taking over.
Chainlink [LINK] Daily Chart
The above chart shows a heavy selling pressure in the middle of March, when the asset’s value fell to its lowest support level of $20. However, a bullish trend has emerged, pushing the market higher.
LINK has recently encountered high resistance at $33.08 and has been challenging it in recent days. Given the bearishness, the current price has shifted closer to the obvious support at $24.15 and the indicators have flipped to emphasise the bearishness.
The 50-day moving average smashed through the price bars and was serving as support at $28. The price has reached this mark, flipped, and has not been able to break through it.
Meanwhile, the relative strength indicator showed that the coin had remained relatively close to the equilibrium range and had not sunk into either the oversold or overbought zones. Currently, the RSI value was 45, indicating that the present price level is accepted by both buyers and sellers.
However, the market’s momentum has been negative. This could draw more buyers if the price continues to smash through the $24 support range. The next stop for Connect could be around $20.
Take profit: $20.36
Risk to Reward: 1.68
The current Chainlink market could provide traders with a shorting opportunity if it breaks support at $24. However, the market has been bearish for a few days, and a sharp price movement is possible at this stage.