Chainlink price analysis is bearish today, as price keeps continuing along a descending triangle pattern that emerged on July 8, 2022. LINK price lowered more than 3 percent over the past 24 hours, moving below support at $6 in the process. Price also touched the lowest point at $5.7 since June 18, 2021, falling almost 84 percent since the highest point of $51.52 in November 2021. LINK has been widely associated with the DeFi industry and its performance usually depends on the DeFi industry.
Over the past few months, the total value locked (TVL) in DeFi has crashed from $250 billion to $73 billion, translating in significant volatility in the market for LINK. After dropping below $6 support yesterday, the next support for Chainlink sits at $5.20.
The larger cryptocurrency market consolidated over yesterday’s price, as Bitcoin price attempted to remain in touch with the $20,000 mark. Ethereum also stayed on course with the $1,100 mark, whereas leading Altcoins showed mixed results. Cardano dropped 2 percent to $0.42, while Ripple made a minor jump to move up to $0.31. Dogecoin declined 2 percent to $0.06, whereas Solana and Polkadot dropped down to $33.79 and $6.78, respectively.
Chainlink price analysis: LINK gathers buyer valuation at discounted price on daily chart
On the 24-hour candlestick chart for Chainlink price analysis, price can be seen moving along a gradual descending triangle since July 8, 2022. This action is preceded by an extended period of sideways trend where LINK price is unable to break past the $6.5 mark. The $7 resistance still seems a step too far on the current trend for LINK, however buyer interest can be generated at discounted prices after falling below $6 support. Price will need to target the crucial 50-day exponential moving average (EMA) at $6.27 which is currently capping upward movement.
The 24-hour relative strength index (RSI) can be seen picking up and reaching 44.35 after falling as low as 40.11, showing increasing market valuation for LINK. Coupled with a 24 increase in trading volume, Chainlink looks set to move back up to the $6.5 demand zone over the next 24 hours. Moreover, the moving average convergence divergence (MACD) curve can be seen forming lower lows currently and is following along the neutral zone.
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