Chainlink (LINK) Is at a Crucial Crossroad: Is Momentum Sliding or a Recovery Imminent?

In the early hours, Chainlink (LINK) was seen trading at a low of $13.45. However, a brief surge pushed its price up to $14.18. Key resistance levels between $13.50 and $14.13 have been breached, and as it stands, Chainlink is currently priced at $13.97, boasting a market capitalization of $9.69 billion. The daily trading volume has notably increased by over 46.76%, reaching $753.34 million.

Key Takeaways

Chainlink (LINK) recently traded between $13.45 and $14.18.
The price is currently at $13.97, with a significant trading volume increase.
The asset is testing a critical support trendline around $13.7, crucial for its price action.
Technical indicators show a bearish trend, with some indications of potential recovery.
The market sentiment is neutral, allowing for possible price swings in either direction.

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The Ali chart demonstrates that Chainlink has been adhering to a rising support trendline since July 2023. Recently, the price has experienced a sharp decline and is presently testing this long-term support line around $13.7. A drop below this trendline could indicate further declines, while a bounce might sustain the upward trend, making this a critical support level.

Will Chainlink Rise or Face Further Declines?

The Moving Average Convergence Divergence (MACD) along with the signal lines for Chainlink are positioned below the zero line, signaling a bearish trend at present. Although this reflects short-term weakness, there is a likelihood of additional downward pressure. Moreover, LINK’s Chaikin Money Flow (CMF) sits at -0.01, indicating minimal selling pressure within the market, almost at a neutral state. The negative figure suggests more money is flowing out than coming in, but does not depict a strong downtrend.

LINK chart (Source: TradingView)

Chainlink's daily Relative Strength Index (RSI) is currently at 45.55, indicating a neutral to slightly bearish momentum. The market does not show strong bullish or bearish sentiments, leaving it susceptible to either direction. Chainlink’s Bull Bear Power (BBP) reading of 0.10 suggests a mild bullish sentiment prevailing in the market. Although this value is small, it indicates some buying pressure, leaning slightly towards bullishness.

Given the current price movement, Chainlink displays a negative outlook, potentially pushing the price down to the support level of $13.90. If the asset continues its upward trend, it may dip to the $13.83 range and trigger a death cross pattern. Conversely, if a bullish reversal occurs, LINK could rise towards the resistance around the $14.04 mark. Should buying pressure strengthen, bulls could break past $14.11, leading to the formation of a golden cross.