Starting this week with a breakup, Link later faced resistance and lost momentum after registering over 150% monthly gain. It currently looks weak on the day following a 5% loss in the past four days.
The past month’s trade marked a great shift in the market structure as it rebounded from the $10 level – pinned as support in the early month. After a week’s surge, it struggled with volatility as the price squeezed and broke through $16 to tap $19.5 – its highest trading level in nine months.
Crossing over into this month bullish, Link initiated a buy and exploded to $27 on Monday. Facing multiple rejections at this price level, it lost grip and fell to where it is changing hands at $22.9, although it remains bullish.
The latest price drops indicate a pullback. As seen on the daily chart, it aims to retest the broken $20 level. If this level holds as support, we can expect a quick bounce to the previous resistance before breaking higher.
A strong daily close under this level should facilitate a broader pullback before locating a solid ground to foot a fresh increase. Despite the drops, the market is still in favour of the bulls in the short term. A further break up should give them more control in the future.
LINK’s Key Levels To Watch
Now that the price is pulling back, the key potential level for a rebound is $19.45. If the price drops below it, $16.1 and $13.8 are other support levels to watch for a drop.
In case of a rebound, Link must reclaim the lost $27 resistance level before rising to $28.7. The next resistance level to watch is $32.6.
Key Resistance Levels: $27, $28.7, $32.6
Key Support Levels: $19.45, $16.1, $13.8
- Spot Price: $22.9
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Image Source: skorzewiak/123RF // Image Effects by Colorcinch
Source: https://nulltx.com/chainlink-price-analysis-prediction-december-7-link-initiates-pullback-after-a-month-rally-down-2-daily/