Chainlink (LINK) Fails to Overpower Pattern Resistance after Rebound

  • Chainlink trades within an uphill parallel channel.
  • Support stands between $20.4 and $22.
  • LINK reads in ABC corrective structure’s wave C.

Chainlink (LINK) has its price actions at the midpoint of a pattern present since 2021 July. The altcoin’s upcoming directional bias depends on whether the coin will reclaim the midline or encounter rejection.

LINK registered upward price movements since 20 July when the alt rebounded from the low levels of $13.38. The uptrends triggered a high near $38.31 on 10 November. With that, Chainlink authorized the ascending channel’s resistance. The line has contained to token’s entire moves.

Chainlink bounced on 4 December after exploring the lows at $15.32, forming a long lower wick. That signals buying momentum, and the altcoin has increased since. For now, LINK hovers at this parallel channel’s middle. Meanwhile, the alt’s long-term directional bias depends on whether Chainlink will face rejection or reclaim the level.

Technical Indicators

Though the rejection, LINK has its daily timeframe technical indicators exhibiting bullishness. The Moving Average Convergence Divergence has shifted towards the positive region. That shows the long-term MA moving slower than the near-term one, signaling a bullish trend. Furthermore, the Relative Strength Index moved beyond the 50-level, confirming bullish preference.

With that, LINK has a high probability of securing near-term support and forming a higher low before resuming its upside actions. In such a case, the nearest support level would stand between $20.4 and $22, the 0.5 and 0.618 Fibonacci retracement support zone, matching an ascending support level.

Chainlink Wave Count

@Altstreetbet, a crypto trader, tweeted a Chainlink chart, saying that the altcoin is ready to surge higher towards $43.5. Meanwhile, the wave count shows the alt hovers in wave C of the ABC corrective setup. Wave B remains standard, with decreased parts having a 1:1.61 ratio, a usual thing within such structures. The likely peak targets sit at $38, then $52, giving waves A to C ratios at 1: 1 and 1:1.6, respectively.

Though Chainlink price observed a bounce, it failed to overcome a pattern resistance. Meanwhile, the global crypto market space witnessed consolidations within the past days, most alts noting brief drops.

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