Chainlink price is preparing for a move lower as its bullish momentum begins to wane. This downtrend, albeit bearish in the short term, will provide investors with an opportunity to accumulate LINK at a discount. It will also allow them to position themselves for a quick run-up to set higher highs. Chainlink price rose 35% between December 6 and December 8 to set a swing high at $23.31. This run-up faced exhaustion at the end of the upswing, resulting in a sideways movement that is currently breaking lower. So far, LINK has dropped 5.3% and from the looks of it, more is yet to come. The 50% retracement level at $20.27 is the first support level that the oracle token will encounter. But, market participants can expect Chainlink price to bounce off the 70.5% retracement level at $19.03.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

A reversal here is likely to propel LINK to tackle the range high at $23.31. Clearing this hurdle will open the path for Chainlink price to take on the next resistance barrier at $25.62. This run-up from $19.03 to $25.62 would constitute a 35% ascent.

Although a continuation of the rally beyond $25.62 is likely for Chainlink price, investors need to exercise caution beyond this point., especially considering the choppy nature of the cryptocurrency market.Regardless of the bullish outlook, if Chainlink price fails to hold above the 79% retracement level at $18.51, there is a high chance the oracle token will retest the range low at $17.23.

If LINK produces a lower low below this barrier, it will invalidate the bullish thesis.

Chainlink Supporting Strong Bearish Outlook

Dec 09 2021

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