LINK/USD tumbles from the recently traded all-time high to test support at the 38.2% Fibonacci level ($15).
LINK/USD likely to settle for consolidation as the RSI moves horizontally around 44.
Chainlink made a remarkable move this month, trading new all-time highs at $20. Unfortunately, the bulls lacked the momentum to sustain gains above this level, leaving LINK open to devouring by the bears. A reversal occurred on Tuesday, sending LINK downward within a descending channel. Fortunately, buyer congestion at the 38.2% Fibonacci level, of the last swing high at $20.17 to a swing low at $12.09 put a stop to the declines around $15.
At the time of writing, LINK is teetering at $16.35 while struggling to hold above a newly established short term support at the 50% Fibo. Glancing upwards, the fifth-largest crypto will encounter more hurdles at $17 (61.8% Fibonacci level), the 100 Simple Moving Average (SMA) at $18 and the all-time high at $20.
From a technical angle, Chainlink is likely to settle for consolidation under the resistance at $17. If support at $16 fails to hold, the recent buyer congestion zone at $15 will come in handy to ensure that no more damage is made to the accrued gains this month.
To put that into perspective, the Relative Strength Index (RSI) is moving horizontally at 44. This follows a rejection from levels around 50. Recovery of the Moving Average Convergence Divergence (MACD) has stalled under the mean line.
On the bright side, the presence of a minor bullish divergence above the MACD hints that buying pressure is present. However, the buying activities are not strong enough to keep the price moving towards $20, at least for now. Therefore, consolidation is the most probable action for LINK/USD in the short term.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org