• The recent pull back from $36.38 to $25 opened doors for newfound buyer interest
  • Intra day trade sees LINK/USD down by 2.3 percent with trading volume also falling
  • Price currently holds above the 50 and 100-day moving averages, suggesting a breakout back towards the $30 mark

Chainlink price analysis shows that the token is set for renewed interest after facing a major downslide earlier in the week. After moving as high as $36.29, LINK faced a turbulent Tuesday as it fell almost 30 percent down to $25. Recovery started on September 9 as it went past the $30 mark, and has consolidated there.

Price at the time of writing sits at $27.35, declining 2.5 percent on intra-day trade. Trading volume has also decreased just under 20 percent, presenting a positive glimpse for gathering buyer momentum.

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The larger cryptocurrency market showed mixed trends, after slight dips over the past 24 hours. The largest cryptocurrency Bitcoin went 0.4 percent down to maintain just below $45,500. Ethereum dropped 0.3 percent while other Altcoins showed positive trends. Ripple and Solana increased by 3 percent each to finish at $1.10 and $185.13, respectively. Whereas Polkadot went up 7 percent to sit at $31.55. The biggest upswing was seen with Cardano, as it went up around 13 percent to solidify at $2.70.

Chainlink price analysis: LINK/USD shows strong buying interest as bulls face 30% decline 1
Chainlink price analysis: Cryptocurrency heat map. Source: Coin360

LINK/USD 24-hour chart: Price holding above 50 and 100-day moving average

24-hour price action for LINK/USD pair indicates that after a massive decline of around 30 percent earlier in the week, price has recovered to some extent and looks to hold above and around the Simple Moving Average (SMA) at $28.5. Over the last 24 hours, the lowest price has been $25.74 and the highest being $28.19, indicating a consolidation being formed around the SMA.

Interestingly, the 24 hour trading volume has decreased by over 19 percent, which indicates there is an attempt from traders to solidify around the current price mark, before initiating the next trend. The Relative Strength Index (RSI) sits at a mid-value of 49, indicating there is neither over or under valuation of the token in current state, something that can always be taken as an encouraging sign by bulls.

Chainlink price analysis: LINK/USD shows strong buying interest as bulls face 30% decline 2
Chainlink price analysis: 24-hour chart. Source: Trading View

LINK/USD 4-hour chart: Upward potential forming with new bullish patterns

Chainlink price analysis over the 4-hour trading chart shows new trends forming as price consolidates after Tuesday’s decline. The 4-hour SMA is $26.9, approximately same as current price. Price also sits near the middle Bollinger Bands’ curve, at $27.4, also showing consolidation at that point.

However, the difference between the upper and lower bands has reduced significantly over the past trading sessions, presenting another scenario for a bull takeover. The 4-hour RSI is a lowly 43.64, suggesting there is significant room for buyers to come into the market and push back towards the $30 mark as per Chainlink price analysis.

Chainlink price analysis: LINK/USD shows strong buying interest as bulls face 30% decline 3
Chainlink price analysis: 4-hour chart. Source: Trading View

Chainlink price analysis conclusion

Chainlink looks set for renewed buyer interest after plummeting more than 30 percent earlier in the week. Technical signs look strong for a bullish trend to attempt price setting above the $30 mark, with resistance still at $34 and support at $20.

On a positive note, LINK maintained above the 50 and 100-day moving averages even through the decline, providing a bullish indication. Chainlink price analysis shows that the price remains well clear of support at $20 as buyers prepare another attempt to breach the 200-day moving average.

Price holds above the 50 and 100-day moving averages and if it can strengthen above SMA and breach the 200-day moving average, the next resistance point could be reached.

SOURCE https://www.cryptopolitan.com/chainlink-price-analysis-2021-09-11/