Chainlink Faces Rejection Twice at the $8.20 Overhead Resistance

Aug 07, 2022 at 08:42 // Price
Coin Idol
Bulls have been unable to sustain upward momentum

Chainlink (LINK) is in an uptrend as the price is above the moving average lines. The uptrend has been resisted since July 30 at the $8.20 high.

The current resistance level is the historical price level of May 16. Bulls have been unable to sustain upward momentum above the $8.20 high as Chainlink trades in the overbought area of the market. 

During the uptrend on July 30, the cryptocurrency dipped above the moving average lines as bulls bought the dips. Today, buyers are struggling to break through the same resistance level. The price of LINK will continue to rise to a high of $10 if the bulls break the recent high. The altcoin will be forced to move between $6.00 and $8.20 if it is rejected at the recent high. 

Chainlink indicator reading

Chainlink is at level 60 of the Relative Strength Index for period 14. The cryptocurrency is in the uptrend zone and is capable of further upward movement. The price bars are above the moving average lines, which indicates further upward movement. The altcoin is above the 80% area of the daily stochastic. LINK has reached the overbought zone. The 21-day line SMA and the 50-day line SMA are up, indicating an uptrend. 


Technical Indicators:

Key Resistance Zones: $10, $12, $14

Key Support Zones: $9, $7, $5

What is the next move for Chainlink?

Chainlink has been trading in the uptrend zone since July 19. Currently, the uptrend has stalled at the $8.20 resistance zone. On July 29, the uptrend tested the 50% Fibonacci retracement level with a retreating candlestick. The retracement suggests that LINK will rise to the 2.0 Fibonacci extension level, or $13.19.


Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.

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