The ChainLink price is slightly higher this morning at $25.35 (+1.66%), just below the significant resistance of the 200-day moving average. And after failing to clear the indicator in the last two days, the bulls may be starting to sweat.
LINK has ridden the wave of enthusiasm engulfing the cryptocurrency market like a champ. In the last three weeks, ChainLink has almost doubled, lifting its market cap to $11.34 Billion. This ranks LINK as the 14th-largest digital asset, sandwiched between Bitcoin Cash (BCH) and Litecoin (LTC). However, despite the impressive performance lately, ChainLink is yet to break out on the upside, unlike many of its peers. And this may be a sign that the rally is faltering and may soon reverse lower.
The daily chart shows the price faces robust confluent resistance between $27.50 and $28.00. Firstly, $27.50 has proved the top four times since the start of June, including twice this week. However, above $27.50, the 200-day Moving average at $27.88 is the real challenge.
Although if LINK clears $28.00, the price should extend higher to the 27th of May high at $35.77. However, a failure to penetrate the 200 DMA should result in ChainLink slipping below the 100-day at $24.90. In that event, the next downside target becomes the previous resistance at $21.00.
Therefore, the next day or two could swing the balance of power to the sellers. Although if the bulls can muster the strength to punch through $28.00, it may send the bears running for cover.
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