- Chainlink price consolidates the biggest daily slump in two weeks, but stays beneath key resistances to keep sellers optimistic.
- A multi-day resistance line, previous support trendline, and 50-day SMA can test LINK buyers despite upbeat stochastic.
- The 100-day and 200-day SMAs act as strong support, challenging Chainlink bears during any fresh downside.
- Short-term downside potential needs validation from $17.30 to dash the broad bullish trend.
Chainlink (LINK) rises over 1.0% to $23.25, bouncing back after the biggest daily slump in a fortnight, as it consolidates early Wednesday morning in New York.
The altcoin’s recovery takes clues from an upbeat Stochastic and a broad crypto market positioning ahead of the Federal Open Market Committee (FOMC) Meeting Minutes.
Still, a pullback in the LINK’s trading volume and its sustained trading beneath the key resistance levels, despite upbeat market capitalization (market cap), keeps the sellers optimistic. According to Santiment, Chainlink’s daily trading volume retreats from a two-week high, snapping a three-day uptrend, while easing to $1.1 billion, whereas the market cap bounces off a weekly low to $14.98 billion by press time.
It should be noted, however, that the quote’s sustained trading beyond the 200-day SMA suggests the bull’s control, despite potential short-term downside hopes.
Chainlink Price: Daily Chart Defends Short-term Bears
On Tuesday, Chainlink reversed from the 50-day Simple Moving Average (SMA), the previous support line from late June, and a seven-week-old descending trend line. The quote’s U-turn aligned with the Stochastic momentum indicator’s retreat to defend sellers, despite the latest recovery.
Meanwhile, 61.8% Fibonacci retracement of LINK’s December-April downturn, near $23.00 threshold, quickly followed by the 50-day SMA hurdle of $23.25, guards the altcoin’s short-term upside.
However, the bears remain in control as long as the price stays beneath the $23.50 resistance confluence, comprising a falling resistance line from August 20 and a multi-month support-turned-resistance line.
Beyond that, Chainlink’s rally to the previous monthly high of $25.64 and the yearly peak of $27.87, as well as the $30.00 threshold and late 2025 top surrounding $30.95, will gain the market’s attention.
On the flip side, a convergence of the 100-day SMA and 50% Fibonacci ratio, close to $20.60-$20.50, the $20.00 round figure and the monthly low of $19.85 could challenge short-term LINK sellers.
Though, major attention is given to the 38.2% Fibonacci retracement of $18.09 and the 200-day SMA level of $17.30 to confirm the altcoin’s bearish trend.
Chainlink Price: Four-Hour Chart Suggests Short-Term Consolidation
On the four-hour chart, Chainlink observes a seven-week resistance line while declining beneath the 200-bar and 50-bar SMAs, amid nearly oversold Stochastic momentum indicator.
This suggests a short-term recovery in LINK prices, highlighting 50-bar and 200-bar SMAs, respectively, near $22.30 and $22.65, before the descending resistance line from late August, close to $23.50.
Beyond that, the daily chart’s higher levels will be crucial for the buyers to retake control.
On the flip side, the 100-bar SMA and 50% Fibonacci ratio of August upside, respectively near $21.75 and $21.70, could test the LINK bears before directing them to the $20.00 threshold and the monthly low of $19.85.
Should Chainlink bears dominate past $19.85, deeper levels discussed on the daily chart will be in the spotlight.
Conclusion
Chainlink portrays a corrective bounce after falling the most in two weeks, backed by upbeat Stochastic momentum. While the recovery appears to be real, the quote stays beneath the key resistance confluence, defending prior bearish breakdown, and suggesting short-term weakness in prices, even as the broad bullish trend holds.
Also read: Top 5 Advanced Strategies to Spot Next Valuable Altcoin
