4 months ago 1 min read

Reaching Overbought Areas, Chainlink May be Rejected at $7.30


The price of LINK is trading at $6.94 at the time of writing. The upswing will pick up steam if buyers can sustain the price above the 50-day SMA. The cryptocurrency price will rise and retest the resistance at $9.48 if it breaks through the moving average lines and gains momentum. Chainlink will be forced to trade in a range between the moving average lines if the buyers are unable to sustain the price above the 50-day line SMA.

Since Chainlink has entered the uptrend zone, its Relative Strength Index for the 14-period is 52, and the altcoin may continue to rise. The price bars, however, are sandwiched between the moving average lines, indicating a potential sideways movement for the cryptocurrency. Chainlink's daily stochastic is over 80, indicating that the current surge has entered the overbought zone.

Technical Indicators‌: ‌Key Resistance Levels - $30 and $35‌, ‌Key Support Levels - $10 and $5

Chainlink is in an upward decline when it reaches the overbought region of the market. The bullish momentum is probably going to slow down as sellers hit the overbought area. The cryptocurrency will probably plummet if bullish momentum runs its course. The decline will resume if the price drops below the $5.77 support level. Otherwise, there will be another wave of sideways movement in the price range of $5.77 and $7.50.

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