Most of the cryptocurrency markets dip into the red once again. This is a very common trend when the value of bitcoin starts to slip for no apparent reason.
While no markets escapes the current downtrend, some are a bit more resilient than others. As far as the Chainlink price is concerned, the overall uptrend seemingly remains intact.
Chainlink Price Uptrend Remains
In the cryptocurrency world, one has to look beyond short-term market changes. Although this is somewhat different when dealing with altcoins, most of the general rules still apply. Looking at the current Chainlink price, one might think this altcoin is incredibly bearish. That is far from the case, although a minor correction was to be expected.
Over the past 24 hours, the Chainlink price shows a near 4.5% drop. That is on par with the percentage drop for bitcoin and other top markets. However, the seven-day momentum remains bullish for LINK. A strong 21% gain is still in effect despite today’s minor breakdown.
That shows this retrace is most likely a short-term development. When looking at the bigger picture, there isn’t too much to be concerned about. Some of the technical indicators below also seem to favor a renewed Chainlink price uptrend.
LINK/USDT Technical Analysis
Bollinger Bands: A lot of Bollinger Bands action has taken place for Chainlink in recent days. A very wide-open band remained visible during the push to $2.29, followed by a brief dip to $2.1. The question now becomes where the next support level is situated.
As the BBs start to close their maw again, there may be a period of minor accumulation. Afterward, another break will materialize, potentially in the upward direction again. It will primarily depend on what happens to bitcoin, as that currency should overcome its own dip with relative ease.
Moving Averages: After the bullish Chainlink price surge, the moving averages are nearly on the same level again. The MA20 and MA50 are on the verge of crossing, although that isn’t necessarily a bearish sign. There have been two minor downward waves already.
When zooming out to the daily chart, it appears that the MA20 and MA50 could cross in a bullish pattern. Both lines are well below the MA200 right now, indicating some potentially interesting momentum looms on the horizon.
RSI: On the hourly chart, the Chainlink price RSI looks promising. A new uptrend is forming, although the longevity of it remains somewhat questionable. A brief push to $2.2 is certainly possible, albeit it will potentially act as a new resistance level.
If that resistance can be broken in a convincing manner, the renewed push to $2.3 remains very possible. Most altcoins will benefit from bitcoin’s recovery. LINK will not be an exception in this regard.