Chainlink (LINK), the decentralized oracle network powering smart contracts, hints at a potential price recovery as the broader cryptocurrency market rebounds. Despite a recent slump, LINK has shown some positive signs in the past 24 hours.
LINK’s Recent Performance and Historical Trends
After a rough month with an 18% price drop, LINK gained 2.78% in the last day, climbing to $13.04. This uptick comes after reaching an eight-month low of $11 last week. Technical analyst Michaël van de Poppe observes a recurring seasonal pattern for LINK, where it tends to find support in June. This trend seems to be holding true in 2024, potentially indicating a bullish phase ahead.
Van de Poppe’s analysis highlights key resistance and support levels in LINK’s historical performance. The recent price action suggests a shift from a downtrend to a potential uptrend, with LINK forming higher lows and higher highs. This could signal the end of a bearish period and the beginning of a bullish one. A crucial resistance level to watch is 0.0004480 BTC, which could be a significant hurdle to overcome for sustained growth.
Historically, LINK has thrived after June bottoms. In 2022 and 2023, it saw significant surges of 121.93% and 155.15%, respectively. This historical data bolsters the argument that the June 2024 low could be another springboard for LINK’s price. Currently trading at 0.0002312 BTC within a supportive zone, LINK might be gathering momentum for a potential breakout.
Challenges and Roadblocks to Recovery
While there’s optimism, van de Poppe emphasizes the importance of surpassing the 0.0006721 BTC resistance level. Breaching this barrier could pave the way for LINK to challenge the 0.0007950 BTC mark, solidifying its bullish trend. However, LINK’s path to recovery faces obstacles, particularly from key resistance levels indicated by moving averages.
The 50-day and 100-day Exponential Moving Averages (EMAs), currently positioned above LINK’s price, suggest downward pressure. Until LINK surpasses these critical EMAs (around $14.60 and $15.27), bears might remain in control.
Also Read: Chainlink Up 16% In Bullish Breakout, Eyes $17 Resistance
A Glimpse of Bullish Potential?
Despite the bearish sentiment, a recent bullish divergence on the Stochastic Oscillator offers a glimmer of hope. This indicator suggests potential short-term bullish momentum or a reversal if buying pressure continues.
While LINK’s recovery faces challenges, historical trends and recent technical signals paint a cautiously optimistic picture. Whether LINK can overcome resistance levels and embark on a sustained climb remains to be seen, but the coming days and weeks will be crucial in determining its future trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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