ChainLink Price Recovery Amid Broader Market Bounce 📈
Recently, the decentralized oracle network ChainLink and its native token, LINK, have seen a resurgence in price following a significant correction in the cryptocurrency market. Despite a 16% price drop over the past month, LINK has rallied back, climbing 5% to $13 in the last 24 hours after hitting a six-month low of $11 on Friday. While the uptrend is positive, crypto expert Ali Martinez has noted some cautionary signals that demand attention.
Bearish Signals For ChainLink 📉
In a recent social media post, Martinez pointed out a pattern on LINK’s daily chart that suggests a looming price correction. The analyst highlighted the potential retest of the neckline of a head-and-shoulders pattern during LINK’s recent uptick to $13. This pattern typically indicates a continuation of a downtrend until the right shoulder is breached, requiring the ChainLink price to exceed the $20 level to invalidate this bearish scenario.
- Martinez also pointed out a bearish divergence on the Relative Strength Index (RSI), adding further weight to the potential downtrend signals for ChainLink.
- To counter these bearish indicators, LINK must maintain support at the $12 level, as emphasized by the analyst.
Potential Bullish Reversal Signals 📈
On the flip side, analyst Ambrosio suggests that if ChainLink forms a Falling Wedge pattern and breaks through the $15 resistance level, it could signal a bullish reversal, opening the door to further price recoveries towards its yearly high of $22.89 achieved in March.
- The token’s ability to surpass key upper resistance levels, currently trading at $13.28, would be crucial in kickstarting a potential price recovery.
- Analyzing the LINK/USD daily chart, the token is likely to face a significant hurdle at the $13.52 price point, which has acted as a strong resistance over the past two months.
- To counter the extension of the bearish scenario and break above the 20-week exponential average, the ChainLink price must rise above and consolidate beyond the $14.38 resistance level.
Final Thoughts on ChainLink’s Price Prospects ðŸ’
While ChainLink’s recent price recovery is a positive sign, cautionary indicators suggest a potential impending price correction. It is important for ChainLink to hold the $12 support level to avoid further downtrends. Breaking through key resistance levels and forming bullish reversal patterns could pave the way for a sustained price recovery, but challenges lie ahead. Keeping a close eye on the evolving price action and key levels will be crucial for determining the future trajectory of ChainLink’s price.
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