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Chainlink’s (LINK) upward price movement stalled at the $16.5 resistance level with buyers unable to break the key resistance. Although price has traded between the $12.7 to $16.5 range, bulls have refused to give up their advantage with buyers still very active and refusing to allow price to go below the $12.7 range low.
This bullish stance has remained despite the shift in sentiment in the overall crypto market. As such, this pump could trigger new gains for bulls.
Can Buyers Break the Bearish Resistance at $16?
The bearish stronghold at $16 has resisted the bullish attempts for new heights on multiple occasions. Yet, buyers could leverage new found momentum to scale through the price hurdle.
Analyzing LINK’s price action on the daily timeframe showed that the altcoin closed bullish over the past three days. The last time this price action was seen on the daily timeframe was in November 2023 and LINK went on a 61% run from $10.1 to $16.5.
A repeat of this bullish move from $14 will see LINK surge to the $18 to $20 price zone. This would result in 35% gains for buyers. With price close to the support zone of $12.7, buyers at the current market price will experience limited exposure to risk, as losses can be cut short on a break of the support level, in the event of a price reversal.
Furthermore, the in-chart indicators posted bullish signals. The RSI (Relative Strength Index) moved to the neutral 50 level after an earlier dip. Similarly, capital inflows as measured by the Chaikin Money Flow (CMF) continued to hover around the zero mark.
This hinted at the willingness of buyers to commit funds, if the bullish price action on the daily timeframe continues.
Combined, another bullish candle close for LINK on the daily timeframe would strengthen the bullish sentiment and could lead to solid gains.
Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.