ChainLink (LINK/USDT) Prepares for a Potential Breakout
Estimated Reading Time: 3 minutes
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more
ChainLink Long-term Analysis: Bullish
ChainLink against the Tether maintains a bullish outlook after the recent downside movement, reflecting strong investor interest and potential further gains.
However, recent price action, according to the Stochastic RSI, shows that the pair is consolidating and awaiting a breakout in either direction.
Though the market looks optimistic, fueled by strong rising trading volumes, LINK/USDT must hit above the $25.67 level to confirm a more upside trajectory.
Currently, ChainLink is trading at $22.94 with over 15% weekly gains.
Technical Indicators
Major Resistance Levels: $25.67, $28.00, and $30.00
Major Support Levels: $20.16, $17.83, and $16.02
ChainLink Technical Analysis
The analysis of Chainlink against the Tether shows that the pair is experiencing a robust bullish momentum. The Guppy Multiple Moving Averages (GMMAs) on the weekly timeframe suggest an established bullish trend, as the sets of EMAs diverge upward.
On the other hand, the oscillator at the bottom of the chart signals caution, suggesting the market has more room to move in either direction.
To this end, if ChainLink maintains its bullish momentum and breaks above the $24.00 level, it could aim for $28.00 and potentially hit above $30.00. Conversely, if selling pressure increases, the pair’s price could retrace to test the immediate support at $20.16.
LINK/USDT Analysis: What’s Next?
On the daily timeframe, LINK/USDT is experiencing a 4.85% decline in price after reaching a high of $24.60, reflecting some profit-taking actions around the former high.
The GMMAs indicate bullish momentum; however, the pullback could signal a potential pause or retracement towards the immediate support.
On the other hand, the Stochastic oscillator signals an overbought condition for LINK/USDT as both lines lie above the 80-mark level. This may suggest a cool down in the short term.
To this end, LINK could test the $22.35 or $21.85 level in the near term. Conversely, if buyers regain control, the pair could retest $24.60 with an aim at $25.00 soon.
You can purchase crypto coins here. Buy LBlock
