Chainlink Price Movement Analysis for 8th September, 2021

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On hump day, the crypto-markets were under extreme pressure as the Bitcoin sell-off persisted on news of El Salvador’s Bitcoin wallet malfunction. As a result, the king currency dropped by 13%, causing a chain reaction in the altcoin market as well.

Chainlink, which had previously experienced a steady rise to a local high of $36.5, has dropped precipitously, as have most of its peers. LINK was trading at $26.1 at the time of writing, down 23% from the previous day.

 

Chainlink 4-hour Chart

Because to the market’s significant selling pressure, LINK’s indicators reached unfavourable milestones. For the first time in more than a week, the MACD fell below the half-line. Furthermore, the histogram, which gauges the distance between the fast-moving MACD and Signal lines, was at its lowest point in five months.

The Awesome Oscillator fared no better. The index was in risk of falling below levels observed in June, when the price fell to a one-month low of $15. Finally, the RSI moved into oversold zone.

See also  Ethereum Classic, EOS, VeChain Price Movement Analysis for 29th May, 2021

Historically, LINK has reacted strongly each time its 4-hour RSI has dropped to the bottom zone, which could instil buying in the market.

 

Reasoning 

Due to the market’s significant selling pressure, LINK’s indicators reached unfavourable milestones. For the first time in over a week, the MACD fell below the half-line. Furthermore, the histogram, which gauges the distance between the rapidly moving MACD and Signal lines, was at its lowest point in five months.

The Awesome Oscillator did not fare any better. The index was on the verge of falling below levels observed in June, when the price fell to a one-month low of $15. Finally, the RSI entered oversold zone.

Historically, LINK has reacted positively whenever its 4-hour RSI has dropped to the bottom zone, which could stimulate market purchasing.

 

Conclusion 

If sellers maintain their assault, LINK’s defensive range of $24-$24.6 will come under scrutiny in the next sessions. If losses are not reduced within this zone, support lines of $22 and $21.2 will be activated.

See also  Ethereum, Ethereum Classic, Polkadot Price Movement Analysis for 7th June, 2021

Meanwhile, traders can wait for LINK to show symptoms of a reversal between $24 and $24.6 and then go long at this discounted price.

 

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