Most of the cryptocurrency markets are still trying to recover from last week. Even the ChainLink price has seen plenty of fluctuations in the past week.
Yesterday’s somewhat surprising Bitcoin price drop hasn’t helped matters much either. It is evident that there will be a lot of future volatility to contend with across all altcoin markets.
ChainLink Price Bounces Slightly
Given what transpired yesterday, there is no guarantee of any uptrend being sustained this week. For the ChainLink price, that is not necessarily good nor bad news. Its value has fluctuated significantly across exchanges for quite some time now. Ever since breaching $2.5, the level has not been sustained for very long.
Over the past week, the LINK value reached $3 and dropped to $2.36 a few days later. Today, it seems as if a strong bounce may be forming. Overcoming the 7.5% deficit for the week may not necessarily happen over the next few days. However, some recovery of lost value is certainly plausible under the current circumstances.
The overall trading volume looks a bit low, but it can prove to be sufficient. Having just over 5% of the total market cap in volume is not terrible. Prominent markets are LINK/USDT and LINK/BTC on Binance. Other pairs on MXC, Coinbene, and Coinbase Pro show that there is some demand for this altcoin right now. Particularly the LINK/USD pair on CB Pro is crucial in this regard.
LINK/USDT Technical Indicators
Bollinger Bands: On the 4H ChainLink price chart, the Bollinger Bands are slowly contracting a bit. Not abnormal, as there has been a lot of bearish pressure prior to this bounce. As such, there can be some wild fluctuations in the very near future. Whether they will be positive, remains unclear.
Moving Averages: The moving averages for LINK look interesting. Following the bearish crossover between the MA20 and MA50, the bounce occurred. As such, it seems likely to assume there will be a bullish crossover this weekend. Both levels still remain well above the MA200.
On the daily, there is a bullish crossover between the MA20 and MA50. More importantly, the MA20 crossed over the MA200 as well. With the red candles not being engulfed by green counterparts yet, it is difficult to determine how sustainable today’s uptrend is. A push to $2.58 can materialize, albeit this will act as a resistance level for the time being.
RSI: LINK is moving out of the oversold territory back into the normal range. Such a steep leg up is interesting, as it signals there will be further upward momentum. Sustaining the ChainLink price uptrend, however, is always a different matter. It will primarily depend on what happens to Bitcoin over the next few days.