Chainlink (LINK/USDT) Consolidates with Potential Upside Price Movement
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The market for Chainlink against Tether seems to be giving out signs of potential reversal after an extended downtrend below $17.00. At the moment, the pair appears to be recording gains but faces resistance around $18.00 despite recording a 1.76% move to the north in the last 24 hours.
To this end, the volume displays bullish participants who are ready to propel the market further. However, more strength is needed, as sight of the previous trend is still visible.
Currently, Chainlink trades at $17.49 with over 650 thousand volumes for the day.
Technical Indicators
Major Resistance Levels: $17.80, $18.50, and $19.60
Major Support Levels: $17.20, $16.80, and $15.00
Technical Analysis
Technically, the market for Chainlink against Tether on the daily timeframe appears to be consolidating for a strong upward move after the October low. However, the Guppy Multiple Moving Averages (GMMA) displays bearish sentiment, suggesting more confirmation is needed for a breakout as the Stochastic RSI pauses halfway to the north.
To this end, bearish volume appears to be waning, with a noticeable uptick in the price tending to the north; a move above $18.50 would cement further upside movement; otherwise, a dip towards $16.80 may be recorded again.
Is LINK Ready for an Upside Move?
In recent times, Chainlink has been moving within its previous boundaries, and it appears that no meaningful low signal has formed. At the moment, the potential for an upside move is weak, and a low may be recorded, as a reversal pattern is yet to form.
To this end, the invalidation point for the current move stands around $15.00, and the token needs to break above the resistance around $18.00 to change the trend.
LINK/USDT Analysis: Can the Bulls Sustain Momentum?
On the 4-hour chart, LINK/USDT appears to be stalled around $17.50 as the signs of a pullback towards the recent support loom. The Stochastic RSI in this timeframe indicates the pair is overbought, and a retracement may be seen if momentum fails to hold.
Meanwhile, the GMMA, on the other hand, suggests the pair is preparing for a bullish crossover as the price and the short-period EMAs converge towards the long-period EMAs. This suggests that if the bulls can sustain the pressure, a breakout to the upside might resurface once again.
To this end, if LINK/USDT can suspend above $17.33 for the rest of this session, a move above $18.50 may materialize in the coming session. However, a move below the current support may invalidate the available option for an upside at the moment.
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