Chainlink (LINK/USDT) Prepares to Breakout Above $13.000 Critical Support Level
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Chainlink Long-term Analysis: Ranging
The market for Chainlink against the Tether has seen an in selling pressure in recent time, with the pair’s price dropping by over 4%. However, the overall market sentiment for the coin has shown a mixed sentiment as LINK/USDT struggles to break above a critical support level.
Before this session, the pair maintained a bullish rally, pushing towards the $20.00 level. However, current traded volume for the pair shows lack of participation as the LINK sees no major breakout.
To this end, the Stochastic RSI and the Guppy Multiple Moving Averages (GMMAs) are signaling a breakout is imminent as market traders monitor for a reversal or further downside movement after the current pause.
Currently, Chainlink trades at $13.804 with a moderate 601.38 thousand weekly volume.
Technical Indicators
Major Resistance Levels: $15.900, $17.000, and $19.000
Major Support Levels: $13.000, $12.000, and $10.500
Chainlink Technical Analysis
The weekly analysis of Chainlink against the Tether shows that the pair is preparing to make a critical move after stabilizing above the immediate support line. However, the compression of the GMMAs suggests potential volatility ahead, but a break below the bearish trend would indicate a further dip in price.
On the other hand, the Stochastic RSI flattens deep in the oversold region, suggesting a potential short-term bounce might occur if bullish volume increases.
To this end, reaction around the $13.500 would determine the next course of action for the pair as the price prepares to make a sudden move.
LINK/USDT Analysis: What to Expect?
On the daily chart, LINK/USDT appears to be making some positive changes as the price sees an increase of 1.87%. However, the appearance of the short-term EMAs under the long-term EMAs indicates bearish pressure still persists in the market.
The stochastic oscillator, on the other hand, shows the pair is yet to make a major turn despite gains as the blue line heads south. To this end, to maintain current gain, the price needs to move significantly towards the $14.218 level; otherwise, a regained momentum by the bears might pull the price to the south.
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