After May’s inverse head & shoulder, bears have restricted buying moves around the $9.29 mark for about three months. As the price traversed beneath the 4-month trend-line support (past resistance), sellers kept securing new multi-month lows up to mid-June.
However, the previous month confirmed a stable buying comeback as Chainlink kept this trend-line support to retest $9.29. The present pattern might catalyze a near-term drop before buying comebacks. While publishing this blog, LINK changed hands near $9.055.
Chainlink Daily Timeframe
LINK buyers have remained committed to reclaiming crucial price zones since sweeping 2-year lows on June 13. The previous month saw an attractive bullish attempt as the token saw climbing wedge recoveries on the daily chart.
As a result, the price action hiked beyond the Bollinger Bands’ basis line, revealing a bullish superiority. However, the $9.29 level poses short-term obstacles, meaning a reversal might ease the buying rally. However, the asset seems primed for upsides.
A possible closing beneath the wedge might open the path to $8, near the BB’s basis line. However, buyers will likely regain their superiority after that, considering the northbound tendencies of the broad market as the basis line.
Reasoning
The RSI (Relative Strength Index) dipped into the overbought region during this publication. The index has exhibited a massive bullish outlook while possible reversal chances lurked around.
Meanwhile, the Chaikin Money Flow’s devaluation from its highs within the past few days led to a bearish divergence with LINK’s price action. Nevertheless, the Moving Average Convergence Divergence still highlighted steady buyi9ng strength as its lines kept a position beyond the zero line.
Final Thought
While publishing this blog, Chainlink’s climbing wedge pattern approached the 3-month horizontal resistance. Moreover, the Bollinger Bands and Relative Strength Index’s overbought tendencies suggest the potential of a plausible short-term breakdown. Targets would stay as discussed.
Any bearish invalidation might witness a relatively lagging period near the Point of Control. Lastly, LINK fans should assess the overall market condition for profitable undertakings. The crypto world explored green during this publication.
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