Chainlink long-term Price Analysis: 10 September
With the digital asset market stabilizing on the charts to attain some recovery over the past week, Chainlink has been the one to lead this pack of altcoins. Recovering from a local bottom of $9.10, the crypto-asset has done well to briefly re-test the $13-mark over the past 12-hours. However, the appalling bearish pressure continues to be dominant on the charts and despite strong efforts to regain a position above the $13-$15 range, LINK may be looking at another phase of correction over the next few days.
Chainlink 6-hour chart
The 6-hour chart for Chainlink suggested that the crypto-asset was looking at a period of correction for a long time, well before the September collapse. It manifested after undergoing an oscillation between the trendlines of an ascending channel and on 2 September, the price broke out of the channel. With the breach in the pattern, the crypto-asset also dived under the 50-Moving Average, a development that was yet another bearish signal for the cryptocurrency.
At the time of writing, with a rising wedge pattern taking shape, there was near certainty that another correction down to $9.10 will be met by the crypto-asset. An immediate bounceback from $10 can also take place, but the bearish sentiment can be flipped as well.
Observing the Relative Strength Index or RSI, the crypto-asset was found to be right under the neutral point, a level over which sellers continued to maintain a strong grip. If buying pressure is able to cross 54 on the RSI, there is a minor chance that LINK might record a breach of the 50-Moving Average, following which, the bearish trend can be reversed.
Chainlink 1-day chart
The 1-day chart for Chainlink faced the same dilemma in terms of reversing the bearish pattern. As pictured, the token was maintaining a position above the 50-Moving Exponential for a long time, until recently, when the valuation tumbled below $10.
At press time, the crypto-asset was trying to close a position above the 50-EMA, despite the same having not been completely successful. In the event of a period where the price remains under the 50-EMA for 48-72 hours, the bear trend will be all but confirmed and new lows will be witnessed over the coming weeks.
Hence, a position above the 50-EMA is essential if the crypto wants to sustain its long-term bull run.