Once again, Chainlink LINK bounced off a key support area after several failed attempts to break it since the start of the year. A continuous increase above this support should bring the bulls back into the market.
Late last month, Chainlink ended a five-week retracement move with a multiple rejection under $20 and resumed its short-term selling pressure.
That sell-off brought the bears back into the market and the price dipped to exactly $13, which has been a critical support area since the start of the year. It bounced off this support and showed signs of strength yesterday.
The bounce, which was initiated with a bullish pin bar on Tuesday, has been a confirmation candle pattern for a buy over the past months. If this pattern plays out again, we may see a nice recovery in the coming days.
But if it fails to push higher in the next few hours, it may revisit the mentioned critical support to refuel an increase. Losing this support in the process could trigger a crash below the yearly low, which could on the other hand invalidate the current buy signal.
Notwithstanding, it is still trading in a bullish zone despite the drops. A swing above March’s high should activate a bigger price movement in the long term. But as it stands now, the bears seem to have an upper hand from a short-term perspective.
LINK’s Key Levels To Watch
Right now, Link is holding weekly resistance at $15.2. If it climbs above this resistance, $16.27 would be the next area of interest for the bulls, followed by the $17.5 resistance in the near term.
If the price crashes below the yearly low of $12, the potential support level to keep in mind would be $11. Below this support lies $10.
Key Resistance Levels: $15.2, $16.27, $17.5
Key Support Levels: $13, $12, $11
- Spot Price: $14.33
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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