Chainlink (LINK) – Maintaining a bearish profile in the medium-term picture

Chainlink (LINK) – Maintaining a bearish profile in the medium-term picture

Posted on Tuesday, April 12 2022 at 8:59 pm GMT+0000

Chainlink’s (LINK) efforts to upgrade the medium-term outlook fell apart, as it failed to stretch the March rally beyond the falling regression channel stretched from the November 10th high of 38.32, and consequently faded harshly below the simple moving averages.

The fresh bearish intersection between the 10- and 20-day simple moving averages is validating the negative tone adopted recently, and oscillators are suggesting that the negative momentum has just started. The MACD slipped below its trigger and zero lines while the TSI reversed sharply lower and sliced through its signal line to nudge into the negative region.

Maintaining its current trajectory, the price would initially combat the February 24th bottom of 11.42. Should this critical barrier prove easy to get through, a more aggressive bearish wave will be activated likely down to the 161.8% Fibonacci extension level of the February – April up-leg at 7.16, and the middle line of the channel.

On the other side, the tough upside boundary shaped by the channel’s upper line and the 10-day simple moving average at 15.71 may deny any new recovery attempts from evolving. By breaching those lines, bulls will gain further confidence, but they will also need to clear the adjacent 20-day simple moving average at 16.20 to approach the April 3rd top of 18.32.

To summarize, Chainlink is maintaining a bearish profile in the medium-term picture, and a push below 11.42 will activate fresh selling orders initially towards 7.16.