- Chainlink remains trapped between $8.36 support and $9.35 resistance.
- A breakout above $9.35 could trigger a 50% upside move.
- RSI divergence suggests potential for a trend reversal toward higher targets.
Chainlink (LINK) is currently trading within a tight range, testing key support levels at $8.36. With a critical resistance zone at $9.35, analysts believe a breakout could lead to significant upward momentum. Will Chainlink finally break free from its long-term consolidation phase and push higher?
Chainlink Faces Key Support at $8, Approaches Breakout Zone
Chainlink (LINK) has been trading within a narrow range, between $8.36 and $9.35, with the price hovering near $8.88. According to analyst More Crypto Online, this range-bound environment follows a completed 5-wave structure on the hourly chart, with $8.36 serving as crucial support. The price must maintain support above $8.36 to avoid a bearish breakdown.
Currently, $8.36 aligns with the 88.7% Fibonacci retracement level, with potential downside targets at $8.06 (50% Fib) and $7.64 (61.8% Fib). The key resistance zone remains between $8.98 and $9.35, and a breakout above this level could fuel a 50% upside rally towards $12 in the short term, according to More Crypto Online.
Chainlink Consolidation: Can It Break Out of Long-Term Range?
Chainlink continues to consolidate within the $5.5 to $9.5 range, a price action pattern that has persisted for over a year. The RSI on the weekly chart has shown signs of bullish divergence, suggesting weakening selling pressure and the potential for a trend reversal. However, the $9.5 resistance has repeatedly acted as a barrier for LINK, preventing upward momentum.
For a bullish continuation, $9.5 must be reclaimed. Otherwise, the price may continue trading in its current range, with $8 acting as immediate support. A breakdown below $8 could lead to a retest of lower support levels, such as $6.5, with $5.5 being the major long-term support.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
