Altcoins
Chainlink Faces Critical Support of $12.95 Amid 8% Drop, Bulls Await Rally
Amid the current cryptocurrency market rally after a recent correction, altcoins are struggling with crucial thresholds. In this context, Chainlink (LINK) is currently undergoing a correction, having seen a decline of over 8% since the beginning of the month, falling from $14.67 to $13.45. The price is now approaching significant support levels.
According to CryptoYapper, a prominent cryptocurrency analyst, Chainlink is positioned near a crucial support level around $12.95. This particular price point has historically represented a significant turning point, often acting as a launch pad for price rallies and as a barrier against further declines.
The chart, shared by CryptoYapper, covers the time frame from October 2021 to July 2024, highlighting a dramatic rise and fall in Chainlink price. After peaking above $34 in November 2021, Chainlink entered a prolonged bear market, which led to a steady decline. The price found some stability around the $12 mark, which acted as a strong support zone. However, the recent dip has brought the price back to this critical level.
Chainlink Shows Bullish Signals
According to the latest data, Chainlink is trading at $13.35, up a notable 4% in the last 24 hours, with trading activity up 52%. Furthermore, the 50-day exponential moving average (EMA) and 100-day EMA are positioned above the current price at $14.67 and $15.32, respectively, indicating potential resistance levels that LINK could face if the upward momentum continues.
Historically, price crossing these EMAs often indicates an uptrend, but with the current position of these indicators, LINK will need to break out of these levels to confirm a sustained uptrend. The Relative Strength Index (RSI) is currently at 45.22, up from a recent low around 41.60. While this indicates that LINK is still in the bearish zone, its recent uptrend suggests a potential shift towards bullish sentiment.
The MACD (Moving Average Convergence Divergence) shows a crossover event where the MACD line crosses the signal line from below, indicating a potential bullish reversal. This positive divergence is often a precursor to upward momentum in price, suggesting that LINK could see further gains if the trend holds.
Meanwhile, the Awesome Oscillator (AO) histogram bars have turned from red to green, signaling a shift from bearish to bullish momentum. The recent green bars suggest increasing buying pressure and a potential continuation of the uptrend. Overall, the combined signals provide a bullish outlook for LINK, suggesting a possible rally if the positive momentum persists.
CryptoYapper said that holding this support level is crucial for Chainlink. If the price fails to sustain above $12.95, it could trigger further bearish action, potentially pushing the price to new lows. Breaking below this point could lead to a loss of confidence and increased selling pressure, exacerbating the downtrend.
If Chainlink holds above this level, it could signal a potential reversal or at least a temporary pause in the downtrend. This support level could act as a springboard for a recovery, attracting buyers who perceive this price as a bargain.
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