Chainlink (LINK) price near key resistance

Chainlink (LINK) price is showing bullish signs on the weekly and daily time frames. It is approaching a key long-term resistance level.

LINK is the native token of Chainlink, which uses a decentralized oracle network to allow the blockchain network to interact with external data feeds. It was created by Sergey Nazarov. Since hitting an all-time high of $53 in May 2021, Chainlink price has been falling below a descending resistance line.

The decline ended at the June 2022 low of $5.30. Since then, the price has been trading very close to the $6.10 horizontal support area. Recently, LINK price formed a long lower wick and a lower high (green icon), which can be considered as the first move in a bullish structure.

Furthermore, the weekly RSI has formed a bullish divergence for the entire period. The indicator has now moved above almost 50.

If the rise continues, the resistance line at $8 is expected to provide resistance. A breakout from the line could take the price towards the $14.90 resistance area.

Chainlink (LINK) price long term
LINK / USDT Weekly Chart. Source: TradingView

Technical analysis from the daily time frame provides a more bullish outlook. The price rallied from March 10 and broke above the descending resistance line four days later. Then, it validated both the resistance line and the $6.55 area as support before moving higher. This entire movement happened after the price diverged below the $6.55 area. Lastly, the daily RSI has moved above 50.

All are bullish signs that suggest the trend is bullish. Currently, LINK price is facing a resistance from the 0.5 Fib retracement resistance level at $7.15, which caused a rejection in the last 24-hours. Once it manages to break above, it could reach the long-term resistance line at $8.

Chainlink (LINK) Price Breakout
LINK/USDT Daily Chart. Source: TradingView

To conclude, weekly and especially daily time frame is bullish to read. They suggest a move towards $8, and a potential breakout is likely. If they materialize, LINK token price could rise to $14.90.

On the other hand, if the rally loses momentum, the price could decline back towards the $6.10 support area. A close below $6.55 would confirm this.

For the latest crypto market analysis from BeInCrypto, click here.


BeInCrypto endeavors to provide accurate and up-to-date information, but shall not be responsible for any missing facts or incorrect information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so do your research and make your own financial decisions.

Source link

Leave a Comment