Chainlink reached an important milestone after touching the $4 level a few days ago. As against recent times, the cryptocurrency is building major support at that level as prices keep bouncing off the area. The markets have been generally bullish in the past few days as buying pressure dominates market sentiments. Although the support at $4.3 is still not strong enough to resist a massive bearish ambush, an additional layer of support exists at the $4.0 mark.
Sellers are also showing signs of relentlessness every once in a while. This keeps the prices modulating between $4.3 and $4.5 levels. As the upper $4.5 level is building up a good resistance to bullish moves, its lower level counterpart at $4.3 seems not equal to the task. This means the sellers may have an advantage in the short term and may break the support at $4.3 to test new levels below the area.
One LINK is currently equal to $4.38 and over $419.25 million have been exchanged in volumes over the last 24 hours. The market cap looks impressive, the figure is $1.54 billion.
LINK/USD 4-Hour Chart
The Resistance Strength Indicator (RSI) dropped sharply yesterday at 13:30 hour UTC. This gave temporary control of the markets to the sellers while LINK recorded about a 3% loss in minutes. A further loss would have broken the major support level at $4.09 (0 Fibonacci retracement level). Below this level, support lies at $3.8 level.
Although the bulls gathered more strength to push the RSI further upwards, the momentum dropped below the 55.0 RSI level. At the moment, prices are stalking below the 50.0 RSI level, an indication that markets may plunge towards the oversold condition at 30.0. If this materializes, prices are bound to plunge towards $4.1.
In the event that buyers keep control for a few more couples of hours from now, this pressure may send prices further up. LINK may go beyond $4.5 (78.6% Fibonacci retracement level). Above this level, further resistance levels lie at $4.62 (1.0 fib level) and $4.76 (1.2 fib level) respectively.
Next immediate resistance: $4.5
Next immediate support: $4.35