Chainlink (LINK) – Exposed to further depreciationsPosted on Monday, November 21 2022 at 9:00 pm GMT+0000
Chainlink (LINK) has been losing ground since the FTX disaster, painting a clear series of lower highs and lower lows. Now, the bears are challenging the last intraday bottom aiming to underpin the current bearish structure, promoted by the persistent negative bearing of the 20- and 40-period exponential moving averages.
The momentum indicators are also suggesting that the descent may see a further extension. The TSI is diving underneath its trigger line, deep in the bearish area while the Awesome Oscillator is losing steam below the zero level.
Having said that, a decisive dip below the November 14th bottom of 5.68, will further intensify selling interest towards the 161.8% Fibonacci extension level of the last up-leg at 5.08. Another step lower from here will likely last until the 261.8% Fibonacci level at 4.10.
Alternatively, if the bulls manage to set a foothold around the current support bar, they may attempt to pilot higher toward the 20- and 40-period exponential moving averages. A significant move above these lines will bring the latest top of 6.66 under the radar. Breaking above this barricade would put the recent downward pattern into question, turning the spotlight to the November 10th top of 7.50.
All in all, Chainlink is currently holding a robust bearish structure. Unless the 5.68 base stands firm, the sell-off will stretch initially towards 5.08.