Over the previous day, the price of Chainlink has been trading downwards. The coin has only gained by 0.4% during the last 24 hours. Price sentiments in the broader market have emerged, and several prominent altcoins have followed suit. Chainlink has gained over 6% in the last week.
It is still struggling in the £6.03 pricing range. LINK must trade over the £6.89 price level for the currency to regain its positive momentum. LINK’s technical outlook indicates bullish strength has begun to exit the market. Because demand for cryptocurrency has decreased, the number of sellers has increased.
Despite the recent rebound in Chainlink pricing, the currency has not enjoyed good purchasing strength. This highlighted that LINK must break through its next resistance level for demand to build on the chart. If purchasing strength remains poor, Chainlink may shortly challenge its closest support level.
The cryptocurrency is now selling at an 86% loss to its all-time high, which it achieved in May 2021. At the time of writing, LINK was trading at £6.15. Over the previous 24 hours, the altcoin has been trading downwards. This might be problematic for the bulls if coin demand continues to fall.
To regain the £6.89 level, Chainlink must break through its overhead resistance of £6.34 and £6.64. The positive momentum might re-enter the market once LINK trades over £6.89. As consolidation continues, Chainlink will reduce its local support line from £6.03 to £5.79. If this occurs, the coin may fluctuate between these two levels.
The quantity of Chainlink traded in the previous session decreased, indicating that sellers returned to the market. Chainlink’s buying strength has remained consistently low this month. The coin’s purchasing power has barely increased in the previous few weeks.
Despite an increase, the Relative Strength Index remained below the half-line, indicating that sellers outnumbered buyers. Chainlink’s price fell below the 20-SMA line as demand for the currency plummeted, and sellers drove the market’s price momentum.
Other technical indicators, on the other hand, suggested that purchasers would make a comeback. The chart revealed the altcoin’s buy signal. Moving Averages Convergence Divergence (MACD) shows the intensity of the price momentum and the altcoin’s price direction.
The MACD made a bullish crossing and generated green histograms above the half-line, indicating that Chainlink was a buy signal. If buyers act on it, the currency may be able to regain its upward price momentum.