Key Insights
- Chainlink price may hit $46, but only if the bulls can protect the $13 level from the bears.
- Ongoing technical signals show signs of consolidation, with strong resistance around $17–$20.
- The recent launch of Chainlink’s data feeds could increase LINK’s utility. However, traders are still approaching with caution.
Chainlink price is in the middle of two outcomes. LINK’s price action shows that it must hold support around $13 to maintain its upward strength. This is despite the relative strength of the cryptocurrency so far.
Crypto analyst Ali Martinez recently stated that Chainlink still has a “clear path to $46”. However, it can only do so if the bulls defend this floor.
Can Chainlink Price Reclaim Its Standing?
After a strong rally in July, the Chainlink price started to consolidate. The daily charts show that the 9-day and 20-day exponential moving averages have flattened.
For context, this shows that the asset is in a neutral trend. There, neither buyers nor sellers are in full control of the market. The RSI also supports this outlook on the daily timeframe, which now shows a reading of 54.
The RSI-based MACD indicator recently turned bearish when the signal line crossed above the MACD line. This indicated weakened buying strength. However, LINK is attempting a bullish crossover as illustrated.
This kind of price behaviour tends to show up after consolidations. There, bulls and bears attempt to pull prices in either direction. For the Bulls to win, they need a strong development in the news. Otherwise, they need a volume surge to break through current resistance levels.
Resistance Zones Caping Chainlink’s Growth
To make any meaningful upward move, Chainlink must first clear several barriers as illustrated. Some of the more Immediate resistance lies near $16.74, followed by $17.26 and $17.39. These are all levels where previous rallies were rejected.
Beyond that, the $20 mark could be an even tougher nut. Over $1.1 million in sell orders is a significant hurdle at this psychological level.
If LINK manages to break above $20, it will have to contend with $22 and then $25. This is yet another psychological resistance.
Per analyst Ali Martinez, LINK has enough strength to fly as high as $46, as long as the $13 floor holds. However, to reach this target of Martinez, LINK must overcome all these resistance levels.
Institutional Accumulation Shows Support Near $15
Despite the price hesitation, large traders are still stacking up on LINK. Some of the strongest supports for the current price of XRP include $15.44, $15.20, and $15.00.
In particular, the $15 level is likely to be the strongest, considering its status as a psychological price level. Still, all eyes are on the $13 support level. If LINK breaks below this, the bullish outlook will become less likely.
While support levels are at $15 and $15.83, LINK holding $13 is non-negotiable. If that level fails, the resulting sell-offs could drive the price further down towards the $12 or even $10 range.
A break above $17.26 for short-term traders could be a great long entry signal. With this, an excellent position for stop losses is below $15.65. For swing traders targeting $46, however, it is more of a waiting game.
Traders in this calibre still need confirmation above $20. However, this goes without saying again: LINK losing $13 invalidates the whole setup.
Chainlink’s current technical setup is neutral. However, the bulls seem to be attempting to keep their dominance. They must reclaim complete control soon, or the general crypto market could start seeing LINK as a missed opportunity.
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