Chainlink ($LINK) is showing short-term rejection after failing to hold momentum at the mid-channel range around $27, as reported by @Ali_Charts. The decline sees analysts proposing that there may be a possible correction to $20 before the token makes the second breakout push.
At the moment, Chainlink ($LINK) is trading at a price of $24.55 after experiencing a 9% daily increase. Although the bounce has generated encouraging sentiments, technical indicators suggest that corrections are likely in the future.
Important Levels in Play for Chainlink
Market analyst @Ali_Charts noted that Chainlink trades between 17 dollars as a low range and 46 dollars as a high range, with a resistance point of about $27 in the middle.
In case the price drops, then it is likely to meet a key support at the price of $20. A further push to the range of $17 cannot be excluded in case the selling pressure comes into play.
Conversely, a successful retest and recapture of $27 would have LINK back on the path to another breakout at $46.
RSI Suggests Cooling Momentum
On the daily chart, LINK’s Relative Strength Index (RSI) is now 68. The momentum is also slowing because the RSI fell to 60 earlier this week. It is possible that the token has to stabilize and then move up again.
Chainlink is a real-time decentralized oracle network and one of the most popular in the industry. It offers secure data transfers between off-chain data and tamper-proof on-chain smart contracts. The given stance adds to the overall enthusiasm towards the $LINK token in the long term.
Traders are now monitoring the range that lies between $20 and $27. A clear step beyond this area will pre-condition a serious trend of Chainlink in the future, either to the support or to new records.
