If the LINK bulls do not protect the current support, we could fall even more!

Avatar Robert Mayne 2 years ago

Today the market was in a mixed trend, and the LINK bulls have been defending the current support zone. Since, in case the sales spread, there will almost certainly be a new crash. At the very least, we would see the crypto close to $6.38, when it is currently trading at exactly $7.30.

At CoinMarketCap, we appreciate that today LINK accumulates a loss by 3.06%, and in the last 7 days it registers gains by 18.20%. It is true that the retracement can be a profit taking because an important order block level has been reached, but there is more to detail, such as the fact that it is a generalized retracement…

Will there be any facts that can stop the fall?

Chainlink is one of the most important projects in the crypto ecosystem, this means that they are constantly growing and working for the community. One of the aspects that we can highlight is the recent announcement they made on Twitter, indicating that Proof of Reserve is coming to offer new advantages to users.

In addition to this, it is worth noting that today the crypto market has been down. Therefore, it is normal that LINK is also giving up part of the profits he has made days ago. However, keeping an eye on price action is useful in these situations, as prices could continue to fall in the worst-case scenario.

As we can see in the daily temporality, there are small ranges to keep an eye on. At the moment, the LINK bulls are defending a support zone that is located at $7.29. If he lost it, he would have free passage until 6.38. Certainly, at this point there is uncertainty, because if the bulls manage to boost prices, it will fly up to $9.

The RSI validates that the trend could continue to the downside. Since, their EMAs have crossed below 55 points. In addition, the MACD shows weakness, and its EMAs also show bearish inclination. However, it is still worth considering that the Japanese candlesticks have not crossed below the CURRENT central margins, so it may be a simple profit-taking to then continue to rise.

LINK bulls must protect current support or prices could fall further
LINK bulls must protect the current support or prices could fall further. Source: TradingView.

We can affirm that there is an excellent outlook for an uptrend to develop, but it is worth bearing in mind that anything can happen. Therefore, if it is not possible to defend the central level of NVS, due to the absence of purchases there will be a crash in search of liquidity; perhaps up to $ 6.38.

In this situation, this support will have to be tested again, but a daily close below $6.38 would be critical. Since, the bears would take the opportunity to look for lower and lower levels; perhaps in liquidity zone 1, near $ 5.50.

The information in this content should be taken for informational purposes only, not intending under any point of view to urge the purchase / sale of financial assets.

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