Chainlink Technical Analysis: LINK Registers Sharp Drop, Falls To $20 

Daily Chainlink LINK Price Analysis

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Last Updated December 10th 2021
3 Min Read
  • The Chainlink price registered a dramatic fall during the ongoing session, dropping by almost 9%. 
  • LINK had made a strong recovery during the ongoing week, and had pushed up to $22.93 on the 8th. 

The Chainlink price fell back during the ongoing session, as the price fell drastically to $20, with sellers looking to push the price further. LINK had started the week on a reasonably positive note, rising by 1.74% on Monday. LINK pushed up again on Tuesday, rising by over 6% and settling at $21.10. Wednesday saw an even more significant increase, with LINK rising to $22.93, before dropping back during the ongoing session. 

Chainlink Price Analysis Indicates LINK Could Have Strong Support at $0.20

The Chainlink price started the previous weekend on a fairly positive note, rising to $25.01, after an increase of 0.92%. LINK continued to push up on Tuesday, registering another marginal increase of 1.29% and settling at $25.33. However, with the 200-day SMA coming into play at this level, LINK could only register a marginal increase on Wednesday before dropping back significantly on Thursday after failing to move past the 200-day SMA. After a highly volatile session, Friday saw LINK continue to remain bearish, as the price dropped by over 11%, dropping to $20.68.

Image: LINK/USD daily

LINK/USD daily chart 121021

 The Chainlink price continued to drop on Sunday, falling to $19.51 after registering a fall of 5.68%. However, despite the prevailing bearish sentiment, the price recovered on Monday, rising by 1.74%. Tuesday saw the price push up higher, rising by 6.30% and settling at $21.10, before rising by 8.68% on Friday and settling at $22.93. LINK fell significantly during the ongoing session, with the price currently down by almost 9%.

We can see that the Parabolic SAR has flipped to bullish. However, if the price continues to drop, we could see it flip back to bearish.

Looking at IntoTheblock’s IOMAP for the Chainlink price, we can see that LINK faces strong resistance at around $23.08. At this price level, almost 15000 addresses have sold more than 46 million LINK

Image: IntoTheBlock 

LINK/USD volume chart 121021

Looking at the 4-hour Chainlink price chart, we can see that LTC had slipped below the 20 and 50-bar SMAs on the 4th, when the price dropped to $19.09. The price could not push higher from this level and fell to $18.92. The price pushed up marginally from this level before dropping to $17.94 on the 6th. LINK pushed up from this level as the price rose above the 20-bar SMA on the 7th, settling at $20.03. LINK continued to push higher from this level, as it moved above the 50-bar SMA on the 8th, settling at $22.93 before dropping to its current level of $20.

We can see that the MACD is bullish, but if the price drops, we could see it flip back to bearish.

Image: LINK/USD 4-hour

LINK/USD 4-hour chart 121021

Chainlink Price Is Expected To Reach These Levels

Looking at the Chainlink price, we can see that LINK had made a very strong start to the week before dropping back to $20 during the ongoing session. If the current sentiment persists, we could see the price drop further towards its support level of $19. However, there is also strong support near this level, and we could see LINK push towards $23 again.