As CCN analyst Valdrin Tahiri predicted last week, Chainlink (LINK) held above the $12 support, preventing a breakdown. This stability triggered a slight upswing, defying the months-long downtrend.
On March 10, LINK’s price plunged to $12.66, its lowest since November 2024. However, the token has since rebounded, climbing to $14.17 today.
Despite the price increase, the token’s technical setup shows that the near-term trend remains unclear. Here are some of the price levels to watch that could determine where Chainlink heads next.
Chainlink Yet to Gain Strength to Overcome Resistance
According to the daily chart, the LINK/USD chart shows that the correction to the four-month low came after the token failed to retest $30 in February. This decline led to the formation of a descending triangle.
However, Chainlink’s price has broken out of the triangle as of this writing. Yet, the Relative Strength Index (RSI) reading suggests that it could be challenging for the upswing to continue.
This is because the RSI reading is below the neutral midpoint despite a recent rise.
While this rising RSI reading might help LINK climb to $14.79, it could face resistance around $17.40.
Another overhead resistance lies around $21.68. Therefore, if buying pressure fails to pick up, LINK’s price might remain in consolidation and struggle to surpass $17 in the short term.
A look at the price Daily Active Addresses (DAA) divergence also supports this bias. The price DAA divergence measures whether user engagement is backing up the price trend or not.
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A positive reading on the price DAA divergence suggests strong user engagement, often supporting a bullish trend. On the flip side, a negative reading signals bearish momentum.
At press time, Santiment data shows the price DAA divergence has dropped to -72.05%, indicating weak network activity.
Given this, Chainlink’s recent recovery could face challenges in maintaining its momentum.
LINK Price Remains Range-Bound
Looking at Chainlink’s technical setup again, the 4-hour chart shows that the token’s next trend is still unclear. One reason for this position is the Exponential Moving Average (EMA).
As of this writing, the 20 EMA (blue) is flirting around LINK’s current value. The same is true for the 50 EMA (yellow), indicating that the token might continue to be restricted within a certain price range.
If this is true, LINK might trade between $13.84 and $15.47. However, if the cryptocurrency breaks above the 0.236 Fibonacci level, this trend might change, and LINK’s price might jump to $17.71 or as high as $21.33.
On the flip side, if the token slips below the $13.44 support, the Chainlink token might undergo another correction. Should that be the case, LINK’s price might decline to $11.85.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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