- The Chainlink price lost 22% last month and took support on a major support level.
- Bullish crossover and divergence in the RSI have been spotted in a daily time frame.
The chart structure displays that the LINK price has managed to defend the major support level of $12.00 since November 2023. After a strong consolidation phase, the price triggered a breakout in the 3rd quarter of 2023.
Chainlink traded at $13.12 at press time with a neutral momentum for the past 24 hours. The market capitalization was $8.00 Billion, and the 24-hour trading volume was $444.68 Million at the time of writing.
The RSI Analysis
Source: By TradingView
The Chainlink price generated a bullish divergence in the RSI during the daily time frame. This bullish sign may attract investors, which may result in a reversal. RSI is 43 and has developed a golden crossover with the RSI-based moving average.
Potential for LINK Crypto
A source on X suggests that the Chainlink price might or might not reach its previous low, but it might be planning to overcome its all-time high. There are 2 scenarios in LINK crypto.
I'm not usually the guy who stays out of the chart when the market is bleeding
— Ambrosio (@CryptoAmbrosio) July 8, 2024
That's why I'm sharing these potential scenarios for $LINK | @chainlink that might happen in the coming weeks
Bullish:
– Holds the $12 support area (Neutral)
– Forms a Falling Wedge pattern and… https://t.co/pRtkBD2osR pic.twitter.com/vdbSx45ygn
Bullish
Defending the $12 mark might make it strong, but it needs a tiny spark to trigger a bullish momentum.
It has formed a falling wedge pattern on a weekly time frame. If it triggers a breakout and exceeds the $15 mark, it may perform positively for a longer period.
Bearish
Sellers may remain strong if the Chainlink price is sustained below the 20-day EMA.
It has formed a head and shoulder pattern on a weekly time frame, which is a bearish sign.
Technical Analysis of LINK Crypto Price on 1-D Timeframe
Since April, the Chainlink price has defended the $12 mark, but the price has slipped below the key moving averages. The technical chart displays a price rejection from the $11 hurdle, which might have grabbed sellers below the major support level.
Suppose the digital asset price surpasses the 20-day EMA with a rise in volume, buyers may show interest. As per the historical chart pattern, the price has shown a bullish move after taking support on the $12 mark.
The Chainlink price over the 200-day exponential moving average might be a sign of bullish momentum for the long term.
On the other hand, it might be a bearish sign for the LINK price to trade below the major support level. Panic selling can be observed below the $12 level, which may lead to intense selling pressure.
Preparing for the Last Swing High
LINK is currently at a critical point, with its price hovering around the $12 mark, a major support level. The technical analysis suggests that cryptocurrency has both bullish and bearish scenarios. On the bullish side, a potential trigger above the $15 mark could lead to sustained positive momentum, especially if a breakout from the falling wedge pattern occurs.
Technical Levels
The bearish trend in LINK crypto can be stopped at the $12 and $8.50 levels. The price could face resistance from the $14.50 and $17.00 mark.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
