Chainlink Price Analysis: LINK tests previous low at $23, more downside to follow?

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TL;DR Breakdown

  • Chainlink price analysis is bearish.
  • LINK/USD retraced to $25 yesterday.
  • The previous low at $23 is currently tested again.

Chainlink price analysis is bearish today as we expect another lower low to be set past the current support at $23 as the overall bearish pressure is still strong. Next support for LINK/USD is seen at $22 and likely will be reached over the next 24 hours.

Chainlink Price Analysis: LINK tests previous low at $23, more downside to follow? 1
Cryptocurrency heat map. Source: Coin360

The cryptocurrency market traded in the red over the last 24 hours. Bitcoin lost 0.47 percent, while Ethereum 0.54 percent. Meanwhile, Terra (LUNA) still holds in the green, with a gain of 5.6 percent.

Chainlink price movement in the last 24 hours: Chainlink recovers to $25, continues moving lower

LINK/USD traded in a range of $23.23 – $24.77, indicating a moderate amount of volatility over the last 24 hours. Trading volume has declined by 29.63 percent, totaling $689 million, while the total market cap trades around $11 billion, ranking the coin in  20th place overall.

LINK/USD 4-hour chart: LINK set to drop further?

On the 4-hour chart, we can see the Chasinlink price returning back to the $23 previous low this morning, likely leading to further downside later today.

Chainlink Price Analysis: LINK tests previous low at $23, more downside to follow?
LINK/USD 4-hour chart. Source: TradingView

Chainlink price action has continued to move lower this week. From the previous major swing high at $38, which was set on the 10the of November, LINK/USD has already retraced around 40 percent to the $23 mark.

Yesterday, we saw LINK recover some of the loss and move to retest previous support at $25 as resistance. After some consolidation, bearish momentum slowly returned by the end of the day, leading to more downside overnight.

The $23 mark was reached around midnight, with small consolidation seen since bears are not yet ready to break lower. However, the Chainlink price should continue lower later today as the overall momentum is still very bearish. 

Chainlink Price Analysis: Conclusion 

Chainlink price analysis is bearish today as we expect further drop lower after bearish momentum saw return this morning. Likely, LINK/USD will see a break lower by the end of the day, with the next support at $22.

While waiting for Chainlink to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.