Chainlink (LINK) – Found foothold around the 61.8% Fibonacci level

Chainlink (LINK) – Found foothold around the 61.8% Fibonacci level

Chainlink (LINK) breached the ascending trendline stretched from July lows before hitting a snag around the 61.8% Fibonacci retracement level of the 13.38-38.2 uptrend.

This month’s aggressive sell-off dampened the medium-term structure and the recent bearish crossover between the 20- and 50-days exponential moving averages is suggesting that sellers didn’t give yet the upper hand despite Tuesday’s recovery.

furthermore, momentum oscillators are still transmitting discouraging signals supporting this bearish view. The MACD is in the negative zone holding beneath its red signal line, while the ROC oscillators flattened somehow below its equilibrium level at 0.

In the above negative scenario, the 50.0% Fibonacci level at 25.85 could continue to act as an immediate support provider, while a bit lower, the September 20^th low at 20.81 could step in and attempt to block the way down. Should it fail to hold, attention would turn towards the 78.6% Fibonacci level at 18.72.

On the other side, if bulls gain more traction, initial obstructions to upside moves may occur at the 27.41 level as shown in the VPVR which coincides with the 20-day exponential moving average. Conquering this, a bigger challenge could emerge at the region surrounding the 38.2% Fibonacci level and the adjacent broken trendline at 28.82.