Chainlink recently experienced a significant 13% correction on Friday, causing a stir among traders and investors. The big question now is what lies ahead for Chainlink amidst a bearish atmosphere in the market and Bitcoin struggling to stay above $70,000.
On the 4-hour chart, Chainlink has broken key support levels following the correction, including the $17.40 level, which aligns with the 100 EMA (Blue line). The volume profile peaks at $16.70, while the price has entered the green zone corresponding to the 200 EMA on the 4-hour chart.
Resistance levels at $16.70 and $18.00 are proving to be strong barriers, especially with Bitcoin’s current price below $70,000. Key support levels to monitor are at $15.60 and $14.30, which coincide with significant flat baselines of the Ichimoku Cloud on the 4-hour timeframe.
Moving to the daily price action, Chainlink has entered the Ichimoku Cloud, signaling a bearish trend. The RSI has dropped from 70 to 43, indicating a shift in momentum. The price is finding support at the 200-day exponential moving average (green area), with a potential downside to the lower boundary of the red Ichimoku Cloud at around $14.30.
If the price breaks the EMA 200 level and breaches the $15.60 support level, Chainlink could face further bearish pressure. On the upside, breaking above the daily 50 EMA and 100 EMA within the $16.30 – $16.50 range could signal a more positive outlook for Chainlink.
Despite the challenging market conditions and Bitcoin’s struggle, monitoring key support levels at $15.6 and $14.3 can help traders make informed decisions and manage risks effectively. With Chainlink currently trading 30% below its recent high, staying vigilant and adjusting strategies accordingly is essential for navigating the market fluctuations.
Please note that the information provided is for informational purposes only and should not be considered financial advice. It’s always advisable to conduct your own research and seek professional guidance before making any investment decisions.