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Chainlink Price Analysis: LINK Token Accepts $25 As A Valid Resistance, As It Was Once Crucial Support

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  • LINK token gets a strong rejection from the $25 resistance with an evening star pattern
  • The LINK/BTC pair was trading at 0.000615 BTC with a gain of 0.76%
  • The 24 hr trading volume in LINK is $1.06 Billion. 
Tradingview

In the daily time frame, the LINK token made an evening star pattern at the $25 resistance level (also the 0.618 Fibonacci level), which was previously crucial support for the LINK token, indicating the validity of this level for further price analysis. As for today, the price has not given any follow-through for the bearish pattern, though the bearish sentiment still remains intact, and the price could plunge to the $20 mark.

About the EMA’s, the LINK token is trading below all the crucial EMA’s 20, 50, 100, and 200, indicating an excellent bearish trend formation. In addition, the price has recently given a bearish crossover of 20-200 EMA and 50-100 EMA supporting the bear attack. The 20 EMA is acting as great dynamic resistance, as the first line of defense for market bears.

The RSI (BEARISH) value is at 45, which is still neutral to slightly bearish. In addition, the RSI line is not showing any dynamic movement along with price, which raises some doubt about the bear’s strength.

The 4hr Time Frame Bearish Channel Continues to Lead The Bear Attack

Tradingview

The 4hr time frame chart of the LINK token shows a clear parallel channel pattern leading LINK price back to its lower level. This trendline coinciding with the $25 level provided excellent resistance to the price, and If LINK token wants to rally back to the higher level, it has to break this channel and sustain above it.

The MACD indicator (NEUTRAL) shows multiple crossovers of the MACD line and signal line around the signal line indicating the doubtful emotion between the market participants. Also, the histogram shows small faded red and green supporting the unclear momentum.

Conclusion: From the technical perspective, the overall market sentiment of the token is bearish, and the LINK token traders can have many short opportunities by following the 4hr parallel channel and also with the breakout of the crucial support $20 mark

Support– $20

Resistance– $25