Chainlink: Why THIS support could define LINK’s next move
The post Chainlink: Why THIS support could define LINK’s next move appeared on BitcoinEthereumNews.com.
LINK found significant support at $22.54, previously a resistance level. Historically, rising Open Interest during a consolidation phase, as seen in LINK’s chart, often precedes a significant price move. Chainlink [LINK] is well known for its crucial role in connecting smart contracts with real-world data. Recently it has shown promising price movement on its chart. This resilience at new support levels suggests the possibility of an upward breakout, potentially setting it on a path to new all-time highs. However, past trends and external metrics reveal mixed signals, prompting traders to remain vigilant. Resistance turns to support In the 12-hour chart, LINK found significant support at $22.54, previously a resistance level. This classic “support flip” has traders speculating whether the coin will resume its upward momentum. The Relative Strength Index (RSI), a key technical indicator, hovered near 50, at press time, reflecting neutral market sentiment. TradingView The current consolidation indicates market indecision, aligning with LINK’s struggle to close decisively above $22.58. This pattern often precedes a breakout or breakdown. If LINK surges above the next resistance level at $24.52, it may target $26.90 or higher. However, failing to hold $22.54 as support could lead to a re-test of the $19.16 region. TradingView Given the doubled revenue figures for Chainlink software services from 2022 to 2023, institutional interest could provide a bullish push. However, historical price patterns indicate LINK might remain subdued within this range, especially with its volatile lower time frames. Traders should monitor the RSI and price action closely for clearer signals. Open Interest analysis Open Interest (OI) for LINK has seen a steady increase in recent days, signaling heightened trader activity and interest in the market. Currently, LINK’s OI has climbed by approximately 8%, reflecting renewed commitment from both bulls and bears. Historically, rising OI during a consolidation phase, as…
Filed under: News - @ January 3, 2025 10:23 pm