Chainlink price analysis LINK continues descent to move below $6 support

Today’s analysis of chainlink prices is bearish as price continues to follow the descending triangle pattern that emerged on July 8, 2022. LINK prices are down more than 3 percent in the last 24 hours, while they are hovering below the $6 support. Prices also hit a low of $5.7 since June 18, 2021, down nearly 84 percent from a high of $51.52 in November 2021. LINK is widely associated with the DeFi industry and its performance is typically dependent on the DeFi industry.

In recent months, Total Value Locked (TVL) in DeFi has fallen from $250 billion to $73 billion, which has led to significant market volatility for LINK. After breaking below the $6 support yesterday, the next support for Chainlink is $5.20.

The larger cryptocurrency market is consolidating above yesterday’s price as Bitcoin price tries to stay in touch with $20,000 while Ethereum is also holding at $1,100 while leading altcoins are showing mixed results. Cardano fell 2 percent to $0.42, while Ripple made a small jump, rising to $0.31. Dogecoin was down 2 percent to $0.06, while Solana and Polkadot were down to $33.79 and $6.78, respectively.

Chainlink Price Analysis: LINK collects buyer forecasts for discounted prices on a daily chart

Looking at Chainlink’s price analysis on a 24-hour candlestick chart, it is seen that the price is moving in the form of a gradual descending triangle since July 8, 2022. This action was preceded by an extended sideways trading period in which the LINK price failed to break above $6.5. The $7 resistance still seems a step further from the current trend for LINK, but a break below the $6 support could attract buyers at a discount. Prices need to target the important 50-day exponential moving average (EMA) at $6.27, which currently limits the upside potential.

The 24-hour Relative Strength Index (RSI) rose to 44.35 after falling to 40.11, indicating a bullish market assessment for LINK. Coupled with a 24% increase in trading volume, Chainlink is likely to return to the $6.5 demand zone in the next 24 hours. Furthermore, it can be seen that the Moving Average Convergence Divergence (MACD) curve is currently making lower lows and tracing the neutral zone.