ChainLink (LINK) is turned down by 174 day resistance area, what next?
ChainLink (LINK) tries to keep its bullish structure in order to make another breakout attempt.
LINK has grown along with the rising support line since hitting a low of $ 13.38 on July 20th.
However, both times LINK was rejected from the USD 35 horizontal resistance area and then declined. Resistance has been building for 174 days since May 27th. So far it has rejected the award three times (red symbols).
After the rejection, LINK has returned to the rising support line.
Although the price responding to this line is a bullish signal, the technical indicators are showing signs of weakness.
The MACD, formed by the short and long-term moving averages (MA), is sloping down and is about to enter the negative zone. This means that the short-term MA is moving more slowly than the long-term MA and is considered a bearish sign.
The RSI, a momentum indicator, has also fallen below 50. This is also considered a bearish sign and can lead to a downtrend.
It is therefore very important for determining the trend direction whether LINK jumps below this support line or falls below it.
Daily LINK / USDT chart | Source: TradingView
Will LINK break?
Analyst @PostyXBT outlined the LINK chart and said the token is likely to rise to $ 42.50.
The source: Twitter
Although the token has fallen a bit since the tweet, it is still moving along the rising support line. Although it is a short-term ascending support line, its slope now coincides with the long-term support line outlined above.
However, similar to the daily timeframe, both the MACD and RSI are sloping down and in negative territory. This supports the possibility that LINK will collapse at short notice.
Since this line is between the Fib retracement support levels of 0.5 and 0.618, a break below it would bring LINK down to $ 22.
Until then, however, the bullish structure will remain intact.
LINK / USDT 6-hour chart | Source: TradingView
You can see the price LINK Here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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