This month, Chainlink underwent another downturn after staying above key support since the start of the year. It recently bounced off and is now showing signs of strength daily following the latest market recoveries.
Following past weeks of drops, which led to a significant breakdown of a key support level of $13, Link tested an eight-month low with a sharp rejection. It bounced back and closed with a hammer candle last Friday.
This bullish candle pattern produced a small gain as the price retested this key support as resistance. But due to rejection, volatility dropped and the price remained stuck around that area since last weekend.
Failure to flip this key support-turned-resistance level could invalidate the bullish reversal signal and may result in another downturn for this pair. Even though the price flips through, Link must retake its previous high before one can start to consider a market structure shift.
Looking at the setup, it is still positioned in a downward range with no signs of major reversal yet. It attempts a shift on the lower timeframe but there’s no signs of confirmation yet.
A dip below the previous low could bring more losses until it finds firm support. It is currently in the middle of consolidation, deciding on which way to go next.
LINK’s Key Levels To Watch
Aside from the $13 resistance, which is preventing buying pressure, the $14.75 level is the next level to watch. Other resistance levels likely to pose a threat to the bulls on the way up are $16 and $17.5 respectively.
The $11 support level is still standing firm. If it collapses, the potential level to consider as support would be $10 and $9.
Key Resistance Levels: $14.75, $16, $17.5
Key Support Levels: $11, $10, $9
- Spot Price: $13.1
- Trend: Bearish
- Volatility: Low
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
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