Chainlink (LINK) Poised for Bounce: Charts Point to Potential Recovery Toward $14.90–$15

• Chainlink is currently trading at $12.90 , and it has stabilized just above the key level of support located at $13.38.
• The RSI, MACD, and Bollinger compression all point to weakening bearish momentum, lending credence to a rebound narrative.
• If LINK is able to successfully bounce, it could head toward the price target of $14.90-$15, while if it is unable to bounce, it is likely to head down to the price point of $12.50.

The wider cryptocurrency market persists in a mixed bag of volatility, as continued decline in trading volatility appears to show some moderate weakness in several major assets. Many altcoins remain in some corrective patterns after a run-up, but some, like Chainlink, also sit at historical support zones associated with typical buyer take-up.

In this volatility-ridden but stabilizing market context, traders are watching key technical levels and momentum indicators in order to get a read on the next directional break. Chainlink is currently trading at $12.90, a 0.19% decrease in the 24 hours.

Indicators Suggest a Potential Change

The chart from TradingView shows the RSI and MACD- indicating LINK is nearing an oversold area on the RSI indicators. The RSI is low, hovering near the bottom band, suggesting selling pressure is beginning to lighten. At the same time, the MACD lines have begun to tighten up, which is indicative of weak bearish momentum. When the RSI and MACD indicators begin to act in concert, it is usually indicative of potential upside, though this needs some confirmation from the price action.

Source: TradingView

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Bollinger Bands & Compression in Volume Signals

The second chart highlights the Bollinger Bands beginning to narrow, highlighting a typical signal of price compression. This compression tends to precede some breakout, either positive or negative in bias. The current volume signals appear to be slightly lighter than the previous three-day period, indicating traders are anticipating action one way or the other.

When the market has historically exhibited low volatility followed by a breakout target buyer as the price is hovering at the support level, this is yet another small signal that a possible rebound could be developing.

source: TradingView

Alicharts’ Tweet Injects Bullish Hopes

Alicharts’ recent tweet also points towards a potential bounce, reinforcing the technical indicators in both charts. The tweet states LINK’s structure looks similar to previous recovery setups, where price bounced successfully after compressing.

In conclusion, when taking into account the RSI, MACD, volume behaviour, and sentiment of the tweet, LINK is showing an early indication of positive momentum building, and the likelihood of a bounce will increase with ongoing support.

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