LINK/USD could fall towards $21 if the bulls fail to keep prices around the $25 support area.
Chainlink ‘s price has bounced around in a wide range between $26.96 and $25.22 since a drop of more than 12% on Tuesday. The crypto-currency’s price is 3.7% and 0.7% in the red over the past 24 hours and on the weekly time frame, illustrating recent struggles.
In the short term, LINK’s price may initially look for support at lower levels before bouncing back to recent highs.
At the time of writing, the 15th-ranked token is hovering around $25.40, with signs of weakness among buyers. The token’s price outlook also currently reflects widespread selling pressure in the crypto market, which could lead to further declines towards $21.
However, LINK’s price is up more than 40% over the past 30 days and more than 79% over the past year, highlighting the potential for long-term price upside.
LINK Price Analysis
Buying pressure for Chainlink has decreased as evidenced by the declining trading volume, suggesting that bears may be taking the initiative and pushing prices lower. With major coins like Bitcoin, Ethereum and Cardano also falling in the past 24 hours, an injection of more pessimism could trigger a decline for LINK/USD.
4-hour chart of LINK/USD. Source: TradingView
On the 4-hour chart, LINK price has remained lodged below the 100MA and 50MA for the past two days. The RSI is also at a new low below 50, suggesting that the bears are likely to strengthen.
There is also a hint of a bearish pennant formation, a continuation pattern whose validation could include a retest of the 0.618 Fibonacci retracement level of the $13.33 to $30.54 swing. The reload zone is near $23.97 on the 4-hour chart, with further support likely at the 0.5 Fib level at $21.94, then at the psychological $21 level.
If the bulls stem the fall and Chainlink price breaks to the upside, there is a robust supply area around the $27 area. Here we find the Fib 0.786 level ($26.86), the 100MA ($26.90) and the 50MA ($27.21) as potential rejection levels.