Chainlink (LINK) Price Analysis: LINK Is in a Downward Correction, a Breakdown to $0.40 Low Likely

Chainlink (LINK) Price Analysis: LINK Is in a Downward Correction, a Breakdown to $0.40 Low Likely

Key Highlights
LINK risks further decline to $6.14 low
The coin faces rejection from the recent high of $16

Chainlink (LINK) Current Statistics
The current price: $11.67 
Market Capitalization: $4,625,555,54
Trading Volume: $988,347,716
Major supply zones: $18.00, $20.00, $22.00
Major demand zones: $8.00, $6.00, $4.00

LINK/USD – Daily Chart

Chainlink (LINK) Price Analysis December 11, 2020
Following its rejection at the $16 overhead resistance, LINK plunged to an $11.10 low. The bulls buy the dips and corrected upward. The upward correction was terminated at $14.50 as the coin resumed a downward move. On the 4 –hour chart, the coin is making a series of lower highs and lower lows. LINK is likely to further depreciate as the price breaks below the SMAs. The crypto is falling as it retests the previous low at $9.50.

Chainlink Technical Indicators Reading
The price has broken below the SMAs which suggests that the coin will fall. Also, the price also broke below the support which signals a change in the trend. LINK is below 25% range of the daily stochastic. It indicates that the coin is in the bearish trend zone.

LINK/USD – 4 Hour Chart

Conclusion
From the price action, there is a certainty that the coin will further decline. On November 26 downtrend, the retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that the coin will fall at level 2.0 Fibonacci extension level. That is the crypto will reach the low of $6.14.


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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.