Analysis of Chainlink's Recent Price Movement - Continued

Chainlink experienced a notable correction last week, resulting in the breach of significant support levels and raising concerns among industry analysts and investors. This decline initiated a downtrend for LINK, highlighted by the breakdown of vital support levels at $17.40, correlated with the 100 EMA on the 4-hour chart. The cryptocurrency's volume profile peaks at $16.70.

Moreover, the price entered a bullish phase in line with the 200 EMA on the 4-hour chart, which coincides with the peak of the $16.70 volume profile. Resistance at $16.70 and $18.00 poses challenges for LINK, while support levels at $15.60 and $14.30 are crucial to monitor.

These support levels are closely linked to the flat lines of the Ichimoku Cloud on the 4-hour timeframe, providing essential potential support amid the ongoing downtrend. Within the daily price action, Chainlink's movement into the Ichimoku Cloud may indicate a bearish trend, with the RSI declining significantly from 70 to 43.

Price Forecast for Chainlink

Currently, Chainlink is strongly supported by the 200-day exponential moving average, potentially guiding the price towards the lower boundary of the daily Ichimoku Cloud around $14.30. Breaking below this level and exceeding the $15.60 support could signal a highly bearish trend.

In the medium term, resistance is expected in the range of $16.30 to $16.50, determined by the daily 50 EMA and 100 EMA. A potential breakthrough above these EMA levels could set a positive technical scenario for Chainlink, pushing it above the Ichimoku Cloud, indicating a bullish outlook for the medium term.