Disclaimer: The findings of the following article are the sole opinion of the writer and should not be taken as investment advice
Chainlink [LINK] has been one of the market’s top-performing altcoins on a year-to-date basis. That being said, the cryptocurrency did fall from its peak back in November, with LINK noting wave-like movements trying to reach the aforementioned price levels ever since.
At the time of writing, LINK was trading at $12.32, with a market cap of $4.84 billion.
Chainlink 4-hour chart
Source: LINK/USD on TradingView
According to the attached chart, the market value of LINK has been tumbling down lately after noting significant bearish pressure on the charts. However, despite a reasonable level of bearishness, the coin’s upcoming trend has not been clear. While the price of the digital asset collapsed within a descending channel, it soon broke out and registered a higher value on the price charts.
This break out peaked at $12.84, following which it dropped to $12.32. This could be a point of consolidation and the price may move along this level for some time.
Reasoning
This assertion can be validated by the Relative Strength Index which was close to an equilibrium state. This meant that the buying and the selling pressures had equalized, at the time of writing. The RSI’s latest dip towards the oversold zone created enough buying pressure to reach equilibrium, although the value of RSI might still be wavering.
On the contrary, the Awesome Oscillator was under zero, indicating that short-term momentum was falling more rapidly than the long-term. However, twin peaks were spotted on the charts, with the second peak observed to be higher when compared to the first one, with the same followed by a green bar. This was a bullish sign.
Conclusion
The LINK market was indecisive, at the time of writing. Although there was a significant level of bearishness in the market, there was also a sign of reversal on the cards. Meanwhile, the cryptocurrency might just see its price move sideways and remain close to $12.32.