Since its local bottom at the end of September, Chainlink has done well to recover alongside the collective market. Its growth hasn’t been explosive but it has managed to attain momentum above key resistance from the past. A recent pullback was witnessed at the end of November, but the asset seems prime to retake another resistance by the end of December or early January.
Chainlink 1-day chart
With Chainlink, it can be observed that the token has continued to move above ascending support as illustrated in the chart. At press time the asset has completed a higher low 5 times and if another pullback manifests, it will be the 6th at support $11.90. Currently, the asset hovers at $12.60 but it is facing a lot of resistance from the 50-Moving Average.
One significant bearish sign is the declining trading volume, which seems to fall with respect to the rise in the valuation; a bearish divergence. The blue line and orange line are LINK’s possible price path in the coming weeks if the bulls return to the market.
Market Reasoning:
For Chainlink to exhibit a strong surge, a retracement down to $11.90 might be necessary and the Relative Strength Index or RSI is suggestive of that narrative. The sellers are increasing pressure, alongside a bearish trend suggested by the MACD as the signal line hovered over the MACD line.
Awesome Oscillator or AO failed to indicate a clear momentum at press time but the trend appeared more bullish than bearish.
Important Range:
Resistance: $15.80
Support: $11.90, Long Term Support at $8.30
Conclusion
The current trend is pretty dry for Chainlink but eventually, it is possible that the asset moves above $15.80 by the end of December.
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