Chainlink (LINK) Price Analysis: $12.80 Resistance Holds the Key to Bullish Recovery

Chainlink price movement remained risk averse, unable to provide a decisive upward or downward movement. After hesitation by participants, LINK traded in a tight range. Strength in momentum was still sluggish, and the recent candles had little follow-through on either side.

Chainlink (LINK) is currently trading at $12.33 after experiencing a decline of 4.18% in the past 24 hours. Sellers dominated the short-term movement but failed to move the price towards a sharp breakdown. Buyers intervened at the approach of the latest lows, and they held down losses.

The trading volume increased by 2.16% and is currently standing at $353.44 million, indicating steady trading at the current levels. Over the last week, LINK also experienced a small increase of 0.62%. This implied that the larger structure has not entirely been weakened.

Source: CoinMarketCap

LINK Needs Stronger Candles to Break $12.80 Barrier

A prominent analyst, CryptoWZRD, highlighted that LINK had made an indecisive closing. He further provided that the stronger candles are needed to build up confidence.  According to analysts, this step could be taken in case Bitcoin dominance starts to decline. He added that LINK must surpass the resistance level at $12.80 to be optimistic. Failure to do it can extend lateral trading.

Source: X

Also Read: Bitcoin Consolidates Near $88,000 as Price Eyes $98,000–$100,000 Zone

Moreover, another analyst, More Crypto Online, mentioned that LINK is currently returning to the sideways stage. The analyst also indicated that an additional corrective c-wave low is a possibility. This mood fueled expectations of further consolidation and no sharp recovery.

Source: X

Trading Volume Up While Open Interest Drops

CoinGlass data shows that the trading volume increased by 7.23% to $768.30 million. However, open interest fell by 4.90% to $555.80 million. The decline showed decreased leverage exposure. The OI-weighted funding rate stood at -0.0039% with a slightly bearish trader bias.

Source: CoinGlass

RSI and MACD Signal Weak Momentum

The Relative Strength Index (RSI) was at 42.76. Its moving average stood at 40.75. The values were below the neutral 50 level, which indicates weak buying power and lack of bullish strength.

The MACD histogram was recorded at 0.035. The MACD line was at -0.362, and the signal line was at -0.397. The histogram became a little positive, but both lines were in the negative territory. This indicated that bearish momentum has relaxed but not completely turned around.

Source: TradingView

Nevertheless, cryptocurrency remained in consolidation. There was stability of prices but no conviction of momentum. Traders seemed reserved and concentrated on confirmation rather than speculation. A clear break beyond resistance or beneath support might dictate the next significant action of LINK.

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