Chainlink (LINK) Makes A Slight Recovery After Plunging, What's Next?

Chainlink (LINK) has been trending in the bearish zone than the bullish over the past 24 hours. But while its price has fallen by 3.12% within this period, the daily chart shows a slight recovery after LINK previously marked significant gains depicting intense momentum.

The current value of LINK indicates that the token has seen some growth in its price since the start of 2023. On January 1, LINK was trading at a $5.57 price.

By January 9, the token had already crossed the $6.0 level. Since then, it has been hovering below $9 and a little over the $5.9 price level. Some technical indicators may suggest LINK’s future price action.

Chainlink (LINK) Plunged To New Support Level

Chainlink has shown some positive price movements over the last week. However, its price action as of yesterday was not promising as the token fell below the $8 price mark. According to data from the 1-day chart, LINK created a long red bar. 

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The bearish price movements brought its price to a new support level at $7.482144, which was formerly a resistance level until the recent breakout.

The token started trading at $8.5755 yesterday but failed to make any significant progress, as its price continued to decline throughout the day. It eventually fell to the day’s closing price of $7.7704, a 9.39% decline throughout the period.

LINK’s price decline can be attributed to the plunge of the broader crypto market on April 19. Major digital assets, including Bitcoin and Ethereum, dipped significantly throughout yesterday. Meanwhile, the market has made a slight recovery following yesterday’s downturn.

Currently, LINK’s 24-hour trading volume is down by 26.64%, as it stands at $419,703,269, a notable difference from yesterday’s value of $543,475,883.

At the time of writing, Chainlink trades at $7.891. Its price movements currently display a slight recovery from yesterday’s plunge, even though its 24-hour price change still shows a 3.12% decline.

What’s Next For LINK?

Chainlink is making a green bar after the huge red candle it made yesterday. The present price action indicates a recovery from its fall within the last 48 hours.

Chainlink price is currently above the 50-day and 200-day Simple Moving Averages (SMA), signaling more bullish sentiments than bearish. While the Relative Strength Index (RSI) still holds a neutral position at 54, there could be more buying pressure with time, given the current bullish sentiments of the market.

Moreover, the token created a new support level at $7.748 following the breakout from that position a few days back. For now, a notable resistance level holds at $8.398, with some support levels at $7.7482144, $6.4398324, and $5.9064793.

Featured image from Pixabay and chart from Tradingview

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