In August, Bitcoin (BTC) experienced rapid fluctuations, with its price falling below $60,000. This volatility has also impacted altcoins. Chainlink (LINK) recently attempted to initiate an upward trend but couldn’t maintain the momentum. What lies ahead for LINK Coin?
Chainlink (LINK) Performance
On August 26, LINK Coin’s price surged to $12.55, sparking investor optimism for a breakout. Unlike the previous bull season, LINK’s utility has increased due to an expanded staking pool, raising expectations. Additionally, ongoing partnerships within the Real World Asset (RWA) sector have positively influenced long-term investor interest.
The price, which dropped by 17% over 30 days, has formed a symmetrical triangle, indicating potential for either upward or downward movement depending on price action. A breakout from this formation could trigger a strong rally, while breaking downward might lead to prolonged constrained movement for LINK Coin.
Current Resistance and Support Levels
Earlier in the week, LINK maintained its support at $9.95, presenting a good opportunity for upward movement. However, resistance at $12.55 dragged the price down as market sentiment turned negative. According to the Ichimoku Cloud, the price remains above the cloud, but $11 could present a significant short-term challenge for bulls.
Looking at the daily chart, the spot price hovers near the EMA20 level, providing no clear advantage for a breakout. The Fibonacci retracement indicator highlights $12.33 as a resistance point. Given BTC’s weakness and the lack of LINK Coin buyers, the spot price might easily move downward.
Actionable Insights for Investors
Key Takeaways:
- Monitor the symmetrical triangle formation for potential breakout or breakdown signals.
- Keep an eye on the $9.95 support and $12.55 resistance levels for key price movements.
- Watch the Ichimoku Cloud and EMA20 levels for short-term price direction.
- Consider market sentiment and BTC performance as influencing factors for LINK Coin.
Potential support is at $10.71. If this level is breached, the price could attempt to drop to $9.95. Conversely, improved market sentiment or significant LINK-specific developments could target the $13.65 resistance. Expanding the staking pool would be a substantial positive development, potentially encouraging long-term investors to accumulate more LINK Coin.