Chainlink Resumes an Uptrend but Is Unable to Break the $8.00 High

Chainlink (LINK) is trading in the uptrend zone as the price is above the moving average lines. Yesterday, the altcoin faced rejection as the market reached the overbought zone at $8.00.

In the previous price action, the resistance was broken after a second test of the recent high. Today, buyers are struggling to break the recent high. There is a possibility that Chainlink will rise and reach the overriding resistance of $9.50 again if the current resistance is broken. The cryptocurrency asset has already reached the previous highs twice, on June 9 and August 12. The altcoin will continue to rise to $12 if the overriding resistance is broken. Meanwhile, Chainlink is trading at $7.76 at the time of writing. 

Chainlink indicator reading

Chainlink is at level 57 of the Relative Strength Index for period 14. It is in the bullish trend zone as the price breaks above the moving average lines. The altcoin could rise as the price bars above the moving average lines. The altcoin is above the 80% area of the daily stochastic. This means that Chainlink has reached the overbought region. Sellers are attracted to the overbought region.

Technical indicators

Key Resistance Zones: $10, $12, $14

Key Support Zones: $9, $7, $5

What is the next move for Chainlink?

Chainlink is in an upward correction after recovering from the downtrend. Since May 12, the cryptocurrency has been in a sideways movement as buyers fail to keep the price above the overhead resistance. The cryptocurrency will exit the downward correction when the price breaks the overhead resistance of $9.50. The sideways movement will resume when the altcoin turns from the overhead resistance.

Disclaimer. This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing in funds.

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