Chainlink continued to decline steadily despite the recovery of some altcoins during the market crash on May 19. The decline in the Chainlink bear market is as high as 44% monthly. While the selling pressure in the market gradually decreased, the upper channel was formed. At the time of writing, LINK is trading at $18, up 6% in the last 24 hours.
Chainlink 4-hour chart
Since June 22, Chainlink has been trading in an uptrend. As seen in the chart above, last week’s attempt to breakout was rejected by the blue line at the 100-MA as the LINK pattern has dropped towards the lower trendline. The red and yellow simple Moving Average lines also fell in the process.
However, the indicators have seen some stability in the market. Traders can take advantage of a possible trend change in the coming sessions.
The Relative Strength Index challenged the neutral zone. According to the Squeeze Momentum Indicator, the bearish momentum in the market has subsided and the chances of another sell-off look slim.
Directional Movement Index is signaling despite some bearish conditions. +DI gets a little closer to -DI. A bullish crossover will signal a trend reversal and accelerate the bulls’ return to the market. While these are encouraging signs, LINK had to retake key areas to start its next rally.
According to the analysis, high interest came to LINK around $18.3 and interestingly it also clashed with the 20-SMA. Above this lies the 100-MA, which moves close to $19.1. If successful close above these points occurs, it could push LINK back towards the 200-SMA (green) and the upper trendline of its pattern.
As a result, selling pressure seems to be easing in the Chainlink market as the bulls prepare to take short-term control. This gave traders an opportunity to take advantage of a potential price volatility in the coming sessions. Profits can be taken at $22.05, June 20 high, with an entry point of $19.2 just above LINK’s 100-MA.