Chainlink Trades in a Limited Range and Struggles with Resistance at $8.00
Chainlink (LINK) price is in a sideways movement after rising above the moving average lines.
Chainlink price long-term analysis: bullish
Chainlink has been trading between $6.50 and $8.00 since the August 19 price collapse. Buyers have failed to push the altcoin higher and retest the overriding resistance at $9.50. Today, the LINK price is rising, reaching the high of $7.60. If the resistance at $8.00 is broken, the market will rise to the upper resistance at $9.50. If the resistance remains unbroken, the cryptocurrency is forced to move between $6.50 and $8.00. However, the current uptrend is likely to be exhausted when the cryptocurrency reaches the overbought zone of the market.
Chainlink indicator display
Chainlink is at level 53 of the Relative Strength Index for period 14. The altcoin is in the bullish trend zone and could continue to rise. The cryptocurrency’s price is above the moving average lines as it could face rejection at the recent high. On the other hand, the altcoin could rise and break the resistance at $8.00. The 21-day line SMA and the 50-day line SMA are horizontally sloping, indicating a sideways movement. The altcoin is above the 80% area of the daily stochastic. Chainlink has reached the overbought zone as it might attract sellers in the overbought zone.
Technical Indicators
Key resistance zones: $10, $12, $14
Major support zones: $9, $7, $5
What is the next step for Chainlink?
Chainlink is in an uptrend but has reached the overbought area of the market. On September 24, the uptrend; a retreating candlestick tested the 78.6% Fibonacci retracement level. The retracement suggests that LINK will rise to the level of the 1.272 Fibonacci extension or the price level of $7.67. From the price action, Chainlink has reached the price target of $7.67, but may retrace from the previous high.
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 in funds.
