Chainlink’s Volume Declines After The 15% Increase: Analysis

Chainlink's volume

Chainlink’s volume drops after the 15% increase in the seven consecutive days. The price of the altcoin is trying to gain momentum and against BTC, Link’s bullish trend remains valid as we can see in the charts below. In today’s Chainlink analysis, we will be next for the price of the LINK token.

Chainlink’s volume recovered overnight as did the price by 4% after the 3-day drop from $3.8 to $3.3. The recovery means that Link will go on a fresh increase to $4. The price is currently hovering around $3.61 against the USD and Chainlink looks quite bullish. However, the analysts warn that LINK  could drop to $3 if the orange trend line fails to hold the support. As it can be seen on the charts, LINK  started a bullish trend after the crash to $1.3.

LINK/USD chart

LINK/USD Daily Chart (Source: Tradingview)

The price continued to go on the ascending channel for the past weeks and the price would continue the increase as long as the channel remains valid. Another breakout could be fundamental before we know whether the bullish action will continue or not. LINK is supported by the orange trend line and if it manages to hold, the price could retest the monthly resistance of $3.8, and perhaps it could even reach the $4.5 in the long run.

In the meantime, Chainlink is holding a weekly support level at $3.38. selling below this level could pull the price down to the channel support at $3. A bearish play could occur if LINK dips below this channel so the closest support to keep an eye on is $2.5. After the Bitcoin recovery that was reported in the Bitcoin news, Chainlink also saw a 4% increase over the past 24-hours. The price reached the 52000 SAT at the time of writing.

LINK/BTC chart

LINK/BTC Chart (Source: Tradingview)

The price and volume of the altcoin are currently in disagreement since Chainlink’s price increase above the 50000 SAT level and the volume keeps on fading, showing weakness in demand. The price is stuck between the 54000 SAT area which puts LINK  in a consolidation mode. If Chainlink dips below the red support line of 50000 SAT along with the grey trend line, which could start a sell to the 46800 SAT support. The following level to watch is the 43400 SAT supports. Chainlink could climb to 52600 SAT resistance.

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