Following a sharp bounce off the lower boundary of a long descending channel last week, Chainlink revisited its previous monthly low but is now stalled due to low volatility. It may resume bearish if supply rises.
Starting the third quarter a bit strong, Chainlink later turned weak and began to show signs of bearish after marking resistance at $15.2.
This metamorphosed into a heavy breakdown to a monthly low of $8 after consolidating briefly above the $13 level in late July. Fortunately, the price recovered sharply from the monthly low with a long wick.
Since the recovery took place last week, Link has been finding it difficult to push above the crucial $11 level (July’s low) that broke down recently. While that level is preventing further recovery, the price is stalled in the middle of consolidation as it builds up for another dip.
Things might turn out more positive if the demand level shoots up. Also, because the price recently bounced off the channel’s lower boundary, we can still expect more recovery in the coming days.
Failure to sustain recovery above the mentioned crucial level could lead to another meltdown. Whichever way, it is essential to note that Link’s daily outlook remains bearish following a 50% loss in five months.
LINK’s Key Levels To Watch
The $11.1 resistance has become a tough obstacle for the bulls to surpass. Overcoming it should fuel more recovery to $12.45, followed by a minor resistance of $14. The next resistance is $15.2, located at the upper boundary of the channel.
Towards the downside, $8 is still standing firmly as monthly support. A drop below this support should send the price to $7 and potentially $6.
Key Resistance Levels: $11.1, $12.45, $15.2
Key Support Levels: $8, $7, $6
- Spot Price: $10.2
- 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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