Chainlink Reaches the Oversold Region as It Holds Above $6.42

The price of Chainlink (LINK) has fallen and hit the low of $6.42. On August 19 price collapse, buyers stopped the decline as the altcoin corrected upward.

The upward correction ended at the high of $7.37 as sellers pushed the altcoin to the low of $6.42. The current support is the previous low of July 26.

In the last 24 hours, the current support held as the cryptocurrency moved back up. Chainlink is trading marginally and reaching the high of $6.60. The altcoin will rise and retest the initial resistance at $7.37. Further downside is doubtful as the market reaches the oversold zone. However, the altcoin could fall to $5.91 if the current support is broken.

Chainlink indicator reading 

Chainlink is at level 36 of the Relative Strength Index for period 14. The cryptocurrency is in a downtrend as it approaches the oversold area. The altcoin risks further decline as the price bars are below the moving average lines. The altcoin is below the 40% area of the daily stochastic. This indicates that the market is in a bearish momentum. 

Technical indicators

Key Resistance Zones: $10, $12, $14

Key Support Zones: $9, $7, $5

What is the next move for Chainlink?

Chainlink is in a downtrend and faces another rejection at the 21-day line SMA. The altcoin could fall back to the previous low at $5.31. On the weekly chart, a retraced candlestick tested the 78.6% Fibonacci retracement level on March 28. The retracement suggests that LINK will fall to the 1.272 Fibonacci extension level or $7.29.

Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing in funds.

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