- Chainlink price tags the $10.82 to $13.06 demand zone, hinting at a bounce.
- Investors can expect a 17% upswing to $15.70 as LINK moves away from the immediate support level.
- A breakdown of the $10.82 barrier will invalidate the bullish thesis and reveal a further downside.
Chainlink price has shattered a few weekly resistance barriers and is currently hovering above a crucial, pivotal point. A bounce off this barrier seems likely but might come after LINK undergoes a minor retracement.
Chainlink price attempts comeback
Chainlink price has dropped roughly 65% in the last three months from roughly $38 to $11. This massive downswing has flipped many weekly support levels into resistance barriers and is currently retesting the daily demand zone, extending from $10.82 to $13.06.
Although LINK looks primed for a move higher, it might dip further lower inside the said demand zone before heading higher. The first hurdle bulls will encounter is the $14.97 ceiling; clearing this impediment will allow market makers to push LINK beyond $15.70 to collect the buy-stop liquidity resting above it.
In total, this move would constitute a 20% ascent and is likely where the upside is capped for LINK.
LINK/USDT 4-hour chart
IntoTheBlock’s Global In/Out of the Money (GIOM) model paints a vivid picture supporting the technical perspective for Chainlink price. The immediate resistance cluster extends from $13.55 to $15.02, where roughly 33,080 addresses that purchased nearly 35.69 million LINK tokens are “Out of the Money.” Therefore, a move into this area is likely to be met with selling pressure from holders trying to break even.
As for the downside, the immediate support cluster is relatively weaker, so there is a chance Chainlink price might dig deeper. In such a case, the GIOM model shows that any retracement will likely be supported by “In the Money” buyers at $10.50 that purchased nearly 30 million LINK.
While the upside for Chainlink price seems limited, it is understandable considering how inactive the crypto markets have been lately. This development can be seen by LINK as the number of new addresses joining the Chainlink blockchain has dropped from 1,500 to 660 in the last three months.
This 56% drop suggests that investors are not interested in LINK at the current price levels.
LINK new addresses
Regardless of the bullish outlook, if LINK produces a daily candlestick close below $10.82, it would create a lower low and invalidate the bullish thesis. In such a case, Chainlink price might explore lower levels.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.