On August 12, Chainlink (LINK) rallied to a high of $9.52, but encountered resistance at the recent high. The recent high was the historic price level of June 10. Today, buyers are struggling to maintain bullish momentum above the recent high.
On June 10, the bulls failed to break the resistance level and the altcoin fell to the low of $5.31. On the upside, Chainlink will rise to $12.21 if the resistance is broken. On the downside, the cryptocurrency will decline and continue to move between $5.31 and $7.51, where the overriding resistance remains unbroken.
Chainlink indicator reading
The Chainlink indicator is at the 72 level of the Relative Strength Index for the 14 period, indicating that the price of LINK has reached the overbought area of the market. Similarly, the altcoin is above the 80% area of the daily stochastic, which also indicates that the market is in the overbought region. The 21-day line SMA and the 50-day line SMA are sloping upwards, indicating an uptrend. The uptrend will continue as long as the price bars are above the moving average lines.
Key Resistance Zones: $10, $12, $14
Key Support Zones: $9, $7, $5
What is the next move for Chainlink?
Chainlink is already in an uptrend, targeting the high at $10.18. The uptrend was slowed down by resistance at $9.50. The uptrend will resume when the current resistance is broken. On July 30, the uptrend retraced through a candlestick that tested the 50% Fibonacci retracement level. The retracement suggests that LINK will rise to the 2.0 Fibonacci extension level, or $10.18.
Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.
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