a day ago | Michael Fasogbon
Key Highlights:
- Chainlink is near a strong resistance area after surging almost 25% in seven days
- If price respects volume on the 4-hour chart, LINK may correct downwards
- Despite a small rejection around the $3 level, LINK remains bullish across the major timeframes
| ⠀ChainLink price: | $2.90 |
|---|---|
| ⠀Key LINK resistance levels: | $3.15, $3.8, $4.8 |
| ⠀Key LINK support levels: | $2.4, $2, $1.7 |
*Price at the time of writing
LINK price long-term prediction: Bullish
After leaving the white bearish channel earlier this month, Chainlink’s growth became strong and noticeable over the past weeks. The weekly long opening also spiked the 17th largest cryptocurrency on the market cap near $3 yesterday with about 25% gains in 7 days.
How to buy ChainLink on Binance (LINK)
The market has dropped slightly to $2.86 while Link’s price is still displaying +2.50% gains at the moment. Notwithstanding, the bullish scenario is expected to resume shortly. Before that, Link will need to overcome the $3.1 resistance – the immediate orange area.
Once ChainLink successfully breaches this resistance, the next resistance to keep an eye on is the orange area at $3.8 before the coin can head to the July 2019 high of $4.8, marked red on the price chart.
Meanwhile, the recent drop to around $3 indicates a rejection. If the bears act upon this, Link could slide to the blue support area at $2.4. Additional support levels to watch include $2 and $1.7. However, intraday trading is still looking bullish at the moment, so we can anticipate more gains in the coming days.
LINK price medium-term prediction: Bullish
LINK’s bullish sentiment appears to be fading slowly on the mid-term time frame and it may soon end if the volume continues to shrink. We can see the price and volume are in contrast (the price is high, the volume is low). This means that Chainlink demand is weakening. Taking a look at the 4-hour chart, we can see that LINK’s volume has been decreasing since mid-January.
This suggests a potential change in trend. If ChainLink dips further, the $2.6 support could suppress bearish actions, along with the orange rising trend line. A lower break could see Link dropping into the blue support zone of $2.4 and $2.1. However, Link could advance higher to the $3.1 and $3.5 resistance levels if the price fails to respect the volume. At the moment, the LINK market remains under the bullish radar.
LINK price short-term prediction: Bullish
On the hourly chart, the scenario is quite different as the price and volume seem to agree. The market is still following a pattern of higher highs and higher lows. After three rejections at $2.95, Link is now pulling toward the blue zone of $2.79 to regain momentum. If the price fails to bounce back here, Link could be in for a bearish swing.
If that happens, the subsequent blue zones around $2.67 and $2.6 would be the next selling targets. On the other hand, a continuation of this trend could allow LINK to hit $3 and above in the next few hours. The short-term bullish bias is still dominant at the moment.
Conclusion
LINK is following a bullish sentiment across the major time frames but the bearish divergence signal on the 4-hour chart is quite worrying. If it plays out, we should expect slight bearish pressure to $2.5 before bouncing back. ChainLink is expected to see a correction sooner or later. Watch out!
Previous LINK price analysis
At CoinCodex, we regularly publish price analysis articles focused on the top cryptocurrencies. Here’s 3 of our most recent articles about the price of ChainLink:
