ChainLink (LINK/USDT) Extends Towards $31.20 Despite Cautionary Signals
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Chainlink Long-term Analysis: Bullish
For a month, Chainlink (LINK) against the Tether (USDT) has demonstrated an impressive surge by breaking above the $28.00 level with weekly gains of 10.85%.
Recent price actions show that LINK/USDT has decisively broken several key levels, suggesting strong bullish momentum. However, for Chainlink to continue the upside trajectory, the pair must maintain the current $24.08 support. The overextended Stochastic RSI suggests that some profit-taking actions could lead to a retest of the recent support level.
Currently, LINK/USDT is trading at $28.92 with 92.07 million traded volumes.
Technical Indicators
Major Resistance Levels: $31.20, $35.00, and $40.00
Major Support Levels: $24.08, $20.00, and $13.69
Chainlink Technical Analysis
The weekly analysis of Chainlink against the Tether shows that the pair has been on a strong upside movement after forming a bullish engulfing candle below the $24.08 level. This is supported by increased volumes and a strong bullish dominance. However, the overextended price actions above the upper band signify an overbought condition that may lead to a short-term retracement to the psychological $20.00 level in the near term.
Additionally, the Stochastic RSI signals an overbought condition with extreme values of 100 and 98.95 for the blue and orange lines, respectively. This suggests the pair may be due for a little correction to the south before attempting any upside movement.
To this end, a bearish crossover of the Stochastic lines would further confirm this correction. Conversely, the conditions above could also indicate strong buyers’ confidence which could further propel the price above $31.20.
LINK/USDT Analysis: Expectations
On the daily timeframe, LINK/USDT shows a strong uptrend, with $31.20 at the upper band level challenging further growth.
However, with the widening Bollinger bands and the placement of the Stochastic oscillator, more gains are possible if the price can break above $31.20; otherwise, a pullback to the mid-band might be imminent.
To this end, while the Bollinger Bands and price action favor a continued upside trajectory, the Stochastic RSI indicates caution as the lines signal that range-bound activity may also be possible.
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