Chainlink price analysis appears to be changing trend after a positive start to the week that saw price jump up by 3 percent over the past 24 hours. LINK has spent an extended period along a downward trend since June 26, 2022 when price crashed from a month-long high point of $7.44. Since then, the token has observed increased volatility with price shipping more than 19 percent. Yesterday’s low point of $6.03 meant buyers came into the market for LINK at a discounted price as price approached support at $6. Over the past 24 hours, Chainlink price recorded a high of $6.36 and provided prospect of testing resistance at $7.3 over the coming trading sessions.
The larger cryptocurrency market also showed positive signs after trending downwards for most of last week, as Bitcoin gathered momentum to move into touching distance of the $20,000 mark with a 5 percent increment. Ethereum rose 7 percent to move above $1,100, whereas leading Altcoins also followed the bullish trend. Cardano rose 3 percent to $0.46, while Ripple recorded a similar increase to move up to $0.32. Dogecoin moved up by 4 percent to sit at $0.06 whereas Solana and Polkadot recorded significant uptrends at 7 and 5 percent, respectively.
Chainlink price analysis: LINK expected to move above 50-day moving average on daily chart
On the 24-hour candlestick chart for Chainlink price analysis, price can be seen following an extended descending triangle since the end of June and forming a sideways pattern over the past week. This downtrend resulted in price lowering down to support at $5.9 where an Evening Star pattern emerged over the past 24 hours to signal a change in trend. LINK price now sits on the cusp of the crucial 50-day exponential moving average (EMA) at $6.40 and is expected to break past it to test resistance at $7.3.
Additionally, the 24-hour relative strength index (RSI) shows signs of increased market valuation at 44.18 and would be approaching the oversold region if price extends past resistance. Trading volume over the past 24 hours picked up by 27 percent, signalling buyer impetus that came in at support. The moving average convergence divergence (MACD) curve can also be seen forming higher lows currently and a bullish divergence may happen once price breaks out. Currently, traders remain skeptical due to recent spell on the sidelines for LINK.
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