The Chainlink price has spent two weeks jammed between trend resistance and moving average support. At some stage, LINK will have to choose sides. The cryptocurrency market has seen mixed results over the last month, and there have been some clear winners and losers. Bitcoin’s (BTC/USD) reversal below $50k and Ethereum’s (ETH/USD) failure to clear $3,400 has polarized the market. Some assets, like Cardano (ADA/USD), set new records in July, while others failed to return to the earlier form of 2021. Chainlink (LINK/USD) sits somewhere in the middle.
Since the third week of July, the Chainlink price has gained 95% to $26.16. Although LINK remains around half the price, it was in May. Furthermore, the recent rally ran into trend line resistance, which has proved unscalable, resulting in LINK pulling back around 16% over the last week. However, the price has found strong support in the three major moving averages that converge above $24.00.
The first thing of note on the daily chart is a descending trend line from the May high. This has proved considerable resistance over the last few weeks and is currently capping the price at $27.20. If LINK can advance beyond the trend, additional resistance is seen at February’s former ATH of $27.50. Which is followed by April’s record of $45.12. If this is scaled, it clears the path to the all-time high at $54.34.
Below the market, the 50, 100-and 200-day moving averages ($24.26, $24.41, and $24.34, respectively) provide considerable confluent support. As long as this support holds, a bullish breakout looks likely. However, failure to sustain $24.26 could be the catalyst for a sharp selloff.
Targets on the downside include the psychological $20.00 barrier, followed by trend line support all the way down at $12.20. However, this apocalyptic scenario is unlikely to play out unless the crypto market collapses.
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