As the altcoin pullback continued, Chainlink [LINK] was one of the worst-hit among the top coins in the cryptocurrency ladder. Its weekly loss totaled nearly 25% as the long-term bullish trend hit a break after dropping below several crucial support levels on the way. Precisely, the token reached a 6-month low with the latest market correction.
Chainlink [LINK] was down by 17.83% over the last 24-hour which drove the price to $10.20. At the time of writing, the crypto-asset recorded a market cap of $4.045 billion and a 24-hour trading volume of $2.2 4 billion.
As the token now found itself in a bearish trap, will the technicals push its value to undo the massive fall?
Chainlink [LINK] Daily Chart:
Despite a minor recovery, the bulls could not push the price above the moving averages.
As depicted in the above daily chart for Chainlink, all the daily moving averages appeared on top of the LINK price candles following the market downturn. The candles slid below the moving averages 50 [Pink] and 100 [Blue] while they did recover above the 200 DMA.
This was a bearish reminder for the token which was more than 55% below its recently established peak. Chainlink [LINK] was trading close to a crucial level. If this level cracks, the crypto-asset fears losing significant gains made over the course of 2020.
Chainlink’s technicals point towards a prolonged bearish phase. The Klinger Oscillator, for instance, underwent a bearih crossover with no hints of a trend reversal despite a minor recovery in terms of the token’s price.
The Awesome Oscillator also flipped to red depicting a bearish sentiment among the market participants of LINK. The Relative Strength Index or RSI was rejected at the 50-median line following which it slid close to the oversold region. This depicted an intense sell-pressure in the market.
Revival chances for the coin in the near-term appeared to be less likely. The support-turned resistances for the coin were found to be at $11.74, and $13.01 respectively. Additionally, it found significant support at $8.82, $7.67, and $6.15 levels.