Chainlink Rebounds and Breaches Last Resistance at $5 after Small Surge

Chainlink (LINK) has been making an impressive bullish run in the month of July. Buyers have pushed above $5 overhead resistance.

The coin rebounded thrice as LINK reached a new high of $8.50. With a strong bounce, LINK has breached the last resistance. On July 6, LINK reached the overbought region of the market but price has continued to trend higher. 

However, in a trending market, the overbought and oversold conditions may not hold. Nonetheless, the upward move has run into a hitch as it faces resistance at the $8.50 high. The bulls have tested the resistance twice to break it. LINK may have a downward move if it fails to break the resistance at $8.50. Alternatively, the coin will be compelled to a sideways move.

Chainlink indicator reading 

The bulls broke the resistance line of the ascending channel. The implication is that price will accelerate on the upside as it breaks the resistance line and closes above it. The coin is above 80% range of the daily stochastic. It indicates that the market is in the overbought region. Sellers may emerge to push prices down. LINK may resume a downward move.

Key Resistance Zones: $7, $8, $9

Key Support Zones: $4, $3, $2

What is the next move for Chainlink?

Chainlink has performed credibly as one of the altcoins to break the last resistance level in a bear market. Presently, LINK is rising but has reached the overbought region of the market. LINK may fall if sellers emerge to push prices down. The uptrend will resume after a minor retracement. 

Disclaimer.  This analysis and forecast are the personal opinions of the author that 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.