Surprisingly, despite the break down on June 11, Chainlink (LINK) recovered as buyers attempted to break the resistance at $4.50.
Previously, buyers were attempting to break the resistance levels. Their failures to break the $4.50 resistance attracted a bearish reaction. The coin dropped to a low at $3.71. At the recent low of $3.71, the coin rebounded as the momentum pushed the price upward. The coin upward move was resisted at the $4.20 high.
Nonetheless, after five days of price tussle below the resistance, a breakout occurred above $4.20 resistance. The breakout propelled price to rally above the previous resistance at $4.50. Today, the coin is retesting the overhead resistance at $5.0. Each time buyers reached the $5.0 resistance, the coin will fall either to $4.40 or $4.60 support. Presently, LINK is trading at $4.78 below the overhead resistance.
LINK is currently above the 70% range of the daily stochastic. It indicates that the market is in a bullish momentum and approaching the overbought region of the market. The coin may fall if the price reaches the overbought region. Sellers may emerge to take control of prices. Presently, the price bars are above the EMAs which suggest a further rise of the coin.
Key Resistance levels: $4, $4.5, $5
Key Support levels: $3, $2.50, $2
LINK’s upward move has been exceptional against the backdrop of other altcoins that are falling. LINK has recovered about 95.6 % from the bear market. The bull market is likely to continue. Traders should initiate long trades any time the coin retraces to the recent low.
Disclaimer. This analysis and forecast are the personal opinions of the author are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.