ChainLink and Polygon have taken a dip. Correction ahead?

ChainLink

Chainlink greatly expands the capabilities of smart contracts by enabling access to real-world data and off-chain computation while maintaining the security and reliability guarantees inherent to blockchain technology.

Currently trading at $21.03, Link is down by 8.42%. The market structure of Link today was balanced. It started the day at a high of $22.89 levels. The coin then rallied down till $21.04 levels during the day before making a reversal. The first support was at $21.77 levels. The coin tested the first major resistance at $22.08 levels. The intraday high was seen at $22.19 levels. On the daily chart, the coin looked consolidating at lower levels. On the hourly chart, the coin is rallying downwards, it is most likely to break on the upside.

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Market indicators:

Hourly RSI: The hourly RSI is at 58.72 levels, indicating minor price strength in the short run. The coin was slightly in the oversold region.

Fibonacci Retracement levels:

23.6%: $21.7, 38.2%: $21.53, 61.6%: $22.11

Major support level: $20.72

Major resistance level: $21.82

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Conclusion:

On the upside the prices may soon move above $22 level, further rally upwards will lead to the first major resistance level at FIB 50% level to come in force. On the downside, a fall back below the level of 23.6% FIB level will test the first support level at $20.60 level.

Polygon

Polygon is currently trading at $2.185 levels, down by 9.87%. Here’s the market structure of Polygon:

It started the day at $2.387 levels. The market structure of Polygon currently is bearish. On the daily chart, the coin consolidated in a bullish flag pattern. It tested the first major support at $2.363 levels and the second support at $2.282 levels. The coin tested the first resistance at $2.386 levels. The intraday high of the coin was seen at $2.442 levels and its intraday low was at $2.144 levels. On the hourly chart, the coin was seen making a bullish reversal after reaching its intraday high. Currently, the edge seems to be with the buyers who are driving the prices.

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Market Indicators

Hourly RSI: The hourly RSI is currently moving towards 40 levels, showing mild price weakness in for short term. However, this is more likely to go down owing to pressure from buyer’s side.

Fibonacci Retracement levels:

23.6%: $2.196, 38.2%: $2.242, 61.6%: $2.316

Major support level: $2.122

Major resistance level: $2.279

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Conclusion

The first major resistance level sits at 78.6% FIB level, barring an extended crypto rally. If broad based crypto rally comes in play, the second major resistance level will be at $2.27 level. A fallback through $2.144 level will bring the major support level at $2.122.

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