Chainlink has been moving at a rapid pace in the crypto space as an increasing number of projects adopt its oracles. Even though its LINK token has been witnessing a downtrend, the asset has been trying to achieve stability.
At the time of press, LINK was being traded at a value of $32.32 with a market capitalization of $13.18 billion.
Chainlink [LINK] one-hour chart
Chainlink’s price has experienced two large downtrends in April due to which the price has been restricted within a tight range currently. The first was observed on 22nd April when sudden volatility caused LINK to slip from close to $40 to $28. However, as the price fought the bears and hit $35, the bears re-entered the market and another downtrend began.
The price broke out of the descending channel and was rising, but with the resistance at $32.70 LINK will need added bullish momentum if it plans on breaching this level.
LINK has tested the current resistance before but was unable to surpass it. As it makes another attempt, the volatility remained low, but the signal line has moved under the candlesticks. If the volatility increases, the price may surge, but given the previous trends, it may reject this resistance and fall once again.
The asset had already hit equilibrium as it reached close to the resistance and currently the RSI remained at 52. This suggested that the buying pressure was reducing as LINK hit $32 and the sellers may take over. Meanwhile, the momentum which was seen building to favor the buyers was still in the negative, meaning a price swing will be difficult to achieve.
Take Profit: $30.71
Risk to Reward: 1.34
The current Chainlink market was dealing with a tough price range. Given the low volatility, the market although bullish, may turn around and test the support at $30.79. A rise in volatility could help the price breach past the resistance level and maintain a price above it.