Chainlink, Ontology, IOTA Price Analysis: 28 May
After Bitcoin retraced towards $36,000 on the back of yet another failed breakout attempt above $40-42k, the broader market noted selling all across the board. The likes of Chainlink, Ontology, and IOTA threatened to drop back to levels seen during the initial crypto-dump on 20 May.
Chainlink [LINK]
Chainlink’s recovery over the past few days has been quite impressive. After touching its January lows of $15, LINK boasted a 131% hike at $35 in just four days. A breakout above $35 and the 200-SMA (green) could have allowed for a comeback towards its early May highs, but selling pressure returned in the broader market and impacted LINK’s ascension.
At press time, LINK inched closer to $26-27 support. This zone showed a confluence between the 50-SMA (yellow) on the 4-hour timeframe and the 200-SMA on the hourly timeframe. Hence, this critical area needed to be defended in order to avoid another bear run towards $17. Another area of support lay at $23.1.
Supertrend Indicator was still bullish in its prediction and flashed a buy signal at the current place. However, a stop-loss was placed around the aforementioned crucial support mark. The RSI reset around 50 after trading in the bullish territory since 25 May.
Ontology [ONT]
While Ontology’s bulls did initiate a 70% rally after dropping to their February lows, gains were limited to the $1.30-resistance. As a result, some sideways action was noted on the 4-hour chart. In fact, a declining ADX indicated weakening and chances of a breakout were minimal. Trading volumes across exchanges were muted over the past week as ONT lacked conviction in its rally from $0.739 to the $1.328-resistance.
If the $1.10-support level was breached over the coming sessions, expect another dip towards $0.947 or $0.739. However, opening short positions would be risky considering the lack of definitive broader market cues. With momentum on the weaker side, according to the Awesome Oscillator, the chances of a breakout above $1.38 were slim.
IOTA
Like its counterpart ONT, IOTA has also been largely restricted to the channel over the past few days. The MACD’s downtrend showed that momentum had gradually eroded since a breakout above $0.98. Further southbound action could trigger a 20% retracement from $0.976 to the $0.762-support level. Weak buying pressure was also made prominent by the OBV’s trajectory since the crypto sell-off.
Once the broader market does switch to bullish, IOTA needed to retake $1.63-1.84 to head back towards its April highs.
