Jonathan Morgan
Independent Analyst
- Chainlink price unable to capitalize on significant gains.
- Bears continue to demolish bulls as enthusiasm wanes.
- Sub $20 price ranges insight.
Chainlink price continues to fall despite a 14% gain on Wednesday's close. Warning signs of a dead-cat bounce and poor follow-through by the bulls could be witnessed by the lower traded volume. A great majority of Wednesday's rise is likely attributed to shorts taking profit.
Chainlink price to drop below August lows; bulls close to panic selling conditions
Chainlink price had a nice bounce off the $20 to $21 value area on the Wednesday session, rallying Chainlink higher and above the Wednesday high. Follow-through buying continues into the Thursday session, with bulls propelling Chainlink near the primary resistance zone at $26.70. As long as Chainlink remains below $26.70, bears are likely to resume control of this market.
If the current rally is confirmed as a dead-cat bounce, then the move south should be swift. Chainlink price will likely find some initial support against the 38.2% Fibonacci retracement, 100% Fibonacci expansion, and Senkou Span B at the $22 value area. If $22 fails to hold as support, then the next target is the 161.8% Fiboancci expansion at $17.73 and the high volume node in that same price range.
LINK/USDT Daily Ichimoku Chart
Bulls will need to push Chainlink price above the Cloud and above the Tenkan-Sen and Kijun-Sen to invalidate any near-term bearish momentum. To eliminate any bearish sentiment to occur, Chainlink price will need to close around the $30.50 value area. Some oscillator support suggests any sustained move above a close of $26 would likely be a continuation move higher.
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