Chainlink Price Climbs 7% in a Day: Is This a Reversal or Just Temporary Relief?

Chainlink has seen a 7% increase in price over the last day, but the weekly trend indicates that this might only be a brief rally within a larger bearish trend.

Key Takeaways

Chainlink's price experienced a 7% increase over 24 hours, reaching approximately $16.20.
The price bounce occurred at support levels around $13.70.
Momentum indicators suggest a potential retest of resistance at about $17.50.
A significant Head and Shoulders pattern on the weekly chart points to ongoing bearish sentiment.
Recent partnerships and developments in tokenized finance bolster Chainlink's fundamental outlook.

Chainlink price

Chainlink Price Technical Analysis

Chainlink's current price stands at $16.20, marking a 7% increase in the last 24 hours. The daily chart indicates that this bounce resulted from support found near the descending channel at approximately $13.70. From here, it appears that the price may attempt to retest the resistance set by the descending trendline, expected to reach around $17.50.

Momentum indicators on the daily chart support a potential retest of this resistance. The Relative Strength Index (RSI) is at 45, showing recovery from oversold conditions and moving upwards. Additionally, the MACD histogram is currently in the green, indicating the beginning phases of a bullish crossover.

However, when examining the weekly chart, Chainlink's price seems to be forming a large Head and Shoulders pattern, with the neckline support around $10. If this level is breached, it would confirm a downward trend and could lead to further price declines. Given this perspective, the recent bounce appears to be a short-term relief rather than a significant reversal. Unless Chainlink manages to break above the $17.50–$18.00 resistance level with consistent follow-through, the price action is likely to remain corrective in nature, operating within the broader bearish framework.

Chainlink price bounces 7% on the daily - reversal or temporary relief? - 1
Chainlink price 1W chart | TradingView

Chainlink’s Expanding Cross-Chain Influence

The recent technical difficulties for Chainlink come alongside significant developments in its fundamental landscape. Notably, Chainlink has formed a key partnership with SBI Digital Markets in Japan, focusing on enhancing tokenized finance solutions across Asia. SBI Digital Markets will utilize Chainlink’s Cross-Chain Interoperability Protocol (CCIP) as its exclusive cross-chain infrastructure.

Other important advancements include a successful pilot program conducted by UBS, a prominent Swiss investment bank, which tested the on-chain subscription and redemption of a tokenized money market fund using Chainlink’s oracle technology. Furthermore, Dinari has collaborated with Chainlink and S&P Dow Jones Indices to introduce the S&P Digital Markets 50 Index on-chain later this year.

This combination of technical analysis and fundamental growth hints at a complex landscape for Chainlink, with short-term relief potentially overshadowed by longer-term bearish trends.