Chainlink Price Consolidates, How Long Will The Bulls Stick Around?

Over the last day, Chainlink’s price has moved sideways. Over the last 24 hour, Chainlink has seen a 0.4% increase in price.

Market sentiments are becoming more broadening and major altcoins follow suit. Chainlink’s gain of close to 6 percent in the past week has been impressive.

It is still struggling within the $7 price range. To see a bullish effect, it’s imperative that LINK moves above $8.

The technical outlook at LINK indicates that the bullish market has seen a decrease in demand. The altcoin market has seen a decrease in demand, which has led to an increase of sellers.

Although Chainlink’s price has seen a slight recovery over the last week, it still does not have a positive buy-back trend.

This meant that LINK needs to break through its next resistance point in order to see increased demand on the chart. Chainlink’s nearest support level will be reached if buying power continues to decline.

The altcoin trades at 86% below its May 2021 all-time high.

One-Day Chainlink price analysis

Chainlink Price
Chainlink’s price was $7.14 per day on TradingView| Source: LINKUSD on TradingView

LINK trades at $7.14, at the time this article was written. Altcoin’s price has fluctuated in the last 24 hour. The declining demand could make it difficult for bulls.

Chainlink must break through its overhead resistances of $7.36 & $7.71 in order to reach the $8 level. The bullish momentum will return to the market once LINK trades at the $8 level.

Chainlink’s local support line will drop to $7 if Chainlink continues to consolidate. Then it will fall to $6.72. If this happens, the coin could start to fluctuate between these levels.

In the last session, Chainlink was less traded than usual. This meant that sellers are back on the market.

Technical Analysis

Chainlink Price
Chainlink had fewer buyers in the one-day chart. Source: LINKUSD at TradingView| Source: LINKUSD on TradingView

Chainlink’s purchasing power has been stable for this month. In the past few weeks, there has been a very small increase in purchasing power.

Despite an improvement in the Relative Strength Index, it was still below the halfway mark. That meant sellers had more buyers than sellers.

The Chainlink price fell below the 20 SMA line due to lower demand and strong sellers.

However, the technical indicators indicated that buyers might make a comeback. This chart showed the buy signal of the altcoin.

A Moving Average Convergence divergence is a sign of strong price momentum. It also indicates the direction of altcoin’s price.

MACD had a bullish crossover, and green histograms were formed above the half line. This indicated that Chainlink was the buy signal.

The coin could have the chance to reverse its bullish momentum if buyers take action. Directional Movement Index measures the price direction as well as the strength.

The DMI line indicated that the -DI was lower than the +DI.

The Average Directional Index fell below 20. Which meant the price momentum was weak.

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