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ChainLink (LINK/USDT) Faces Resistance at Key Levels: What’s Next?

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ChainLink (LINK/USDT) Faces Resistance at Key Levels: What’s Next?

Over the past 24 hours, Chainlink against Tether experienced a 0.76% drop, bringing the pair’s price to $12.51. This appears to be a continuation of the broader weekly decline of 8.8%. As it stands, analysts attribute this downward trend to ongoing sell pressure from the 11.25 million LINK that was unlocked in November. Additionally, ChainLink has not been doing well above critical support, as dominance from Bitcoin continues to add pressure to the altcoin market.

At the moment, the price seems to be gaining momentum, though under the cluster of moving averages, but the Stochastic RSI appears to be showing positive signals from the oversold region.

Currently, ChainLink trades at $12.62 after opening around $12.55 with more than 414,000 volume on the daily chart.

ChainLink (LINK/USDT) Faces Resistance at Key Levels: What's Next?
LINKUSDT-Daily Chart

Technical Indicators

Major Resistance Levels: $13.41, $14.00, and $17.64

Major Support Levels: $12.55, $11.95, and $11.00

Technical Analysis

Technically, ChainLink against Tether on the daily timeframe seems to be displaying a weak uptrend momentum with the price tending upward toward $17.00. However, the activities of the price under the Simple Moving Averages Ribbon show that the market dominance lies with bears despite the mild recovery signal from the Stochastic RSI.

To this end, if the pair manages a breakout above $13.41, an upside move, especially towards $17.00, could potentially be initiated, but the current market sentiment leans towards a consolidation phase.

Meanwhile, a tweet from @Morecryptoonline suggested that ChainLink is currently operating within a correctional wave, as it seems the token is preparing for a slight upside. To this end, the analyst was able to identify $11.95 and $12.35 as strong support for the coin.

LINK/USDT Analysis: Will the Price See a Reversal?

On the 4-hour chart, LINK/USDT is currently testing its support levels near $12.44, building a base as the momentum oscillator appears to be curling to the north from the 69.09 mark level.

As it stands, the price action shows that the coin is attempting to reverse its short-term decline, as it trades above the short-period (20-SMA) moving average. However, the market’s lack of strong volume and the near-overbought condition of the SRSI suggest this rebound might face significant resistance at the $13.22 level.

ChainLink (LINK/USDT) Faces Resistance at Key Levels: What's Next?
LINKUSDT-4H Chart

 

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