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Chainlink Price Analysis: February 21

A new day and a new high for Bitcoin and many other altcoins. However, despite the surge seen earlier, the crypto market has noted a period of consolidation as buying pressure eases. Chain link [LINK] has been a major crypto in the market that has been able to carve a niche in the decentralized finance ecosystem and has been trading higher since the start of the month.

With a market cap of $ 13.96 billion, Chainlink’s native LINK token has slipped to ninth position on the CoinMarketCap list. At the time of writing, the digital asset was trading at $ 34.42.

Chainlink Daily Chart

Source: LINKUSD on TradingView

The above chart from LINK has highlighted the price increase in an ascending channel. The price has increased by at least $ 10 in the channel, but there could be a negative price breakdown in the future.

Reasoning

Despite the bullish market trend, a trend change could occur in the LINK market. Bollinger bands have seen the market become more volatile as the bands diverge. Meanwhile, the moving average of 50 with the signal line remained below the candlesticks serving as support.

While the relative strength index has remained close to the overbought zone. This suggested that there were more buyers in the LINK market than there were sellers. The indicator had briefly entered the overbought zone, however, it retraced its steps.

A correction could make its way to the LINK market as it was saturated with buyers and its indicators were in the extremes.

Important levels

Entry level: $ 26.65
Stop Level: $ 37.82
Enjoy: $ 26.65
Risk of Reward: 1.27

Conclusion

The Chainlink market has seen a sharp surge in prices, however, the trend could lead to a breakdown. This could cause the asset value to drop to support nearly $ 26 in the coming week.

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