ChainLink (LINK) is trying to maintain its bullish structure in order to possibly make another breakthrough attempt.
LINK has risen alongside an ascending support line since hitting a low of $ 13.38 on July 20. The upward movement led to a high of $ 36.33 on September 6 and a slightly higher high of $ 38.31 on November 10.
However, both times LINK was rejected by the horizontal resistance zone of $ 35 and fell. Resistance has been in place since May 27, for a total of 174 days. So far he has rejected the token three times (red icons).
After the rejection, LINK returned to the back-up helpline once again.
While the fact that it is reacting to the line is a bullish sign, technical indicators are showing signs of weakness.
The MACD, which is created by a short and long term moving average (MA), moves downward and is almost negative. This means that the short term MA is moving slower than the long term and is seen as a bearish sign.
Likewise, the RSI, which is a momentum indicator, has fallen below 50. This is also seen as a bearish sign and is associated with downtrends.
As a result, whether LINK bounces or breaks off the line is crucial in determining the direction of the trend.
Is LINK going to crash?
Cryptocurrency trader @PostyXBT described a LINK chart, indicating that the token could potentially rise to $ 42.50.
Although the token has declined slightly since the tweet, it still follows the ascending support line. Although this is a short-term ascending support line, its slope currently coincides with the longer-term one described previously.
However, like the daily time horizon, the MACD and RSI are moving lower and are in negative territory. This supports the possibility of LINK going down in the short term.
Since the line is between the retracement support levels of 0.5 and 0.618 Fib, a breakdown of it would take LINK to the lows at $ 22.
However, until the lines are in place, the bullish structure remains intact.
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