Chainlink (LINK) continues to display a bullish technical setup, trading within a steady ascending channel since mid-April. Despite minor pullbacks, the altcoin is holding above critical support levels, currently priced at $15.81, marking a 0.46% gain over the past 24 hours. However, weakening momentum indicators suggest that LINK may face near-term consolidation before any decisive breakout.
LINK Maintains Bullish Channel Structure
Chainlink has consistently respected the parameters of an upward-sloping parallel channel on the 4-hour chart. The most recent rejection at $16.24, near the upper channel boundary, prompted a dip toward mid-range levels. Crucially, LINK has so far maintained its position above $15.67, a key support level aligned with the 9-period Triple Exponential Moving Average (TEMA).
As long as LINK remains within this ascending channel and above the lower trendline near $15.42–$15.67, the medium-term bullish trend remains valid.
Technical Indicators Signal Caution
While the channel structure remains intact, technical indicators flash caution. The Relative Strength Index (RSI) has dropped to 44.80, signaling declining buying pressure. Meanwhile, the MACD shows early signs of bearish divergence, with the MACD line slipping below the signal line and the histogram turning slightly negative — often a precursor to a potential short-term pullback.
Also Read: Chainlink (LINK) Breaks Out of Two-Month Range – Is a Major Rally Ahead?
Additionally, Bollinger Bands are narrowing, indicating reduced volatility and hinting at an imminent breakout or breakdown.
Key Levels to Watch: $15.42 and $17
If LINK bounces strongly from the $15.42–$15.67 support range, bulls may mount another rally toward the $17 resistance. However, a failure to hold this support could result in a breakdown below the ascending channel, potentially triggering a decline toward $14 and invalidating the bullish outlook.
Outlook: Short-Term Uncertainty, Medium-Term Optimism
While Chainlink continues to trend upward overall, its inability to decisively break above $16.24 could keep it in a state of consolidation. Traders should monitor volume and momentum closely in the coming sessions to determine whether LINK can resume its climb or faces a deeper correction.
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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