- Chainlink price has been increasing since the beginning of the week. Recently, an uptrend started in the crypto market, especially right after Bitcoin’s bull run. After rising above 11 percent, LINK may now be in a trend reversal, which could cause a slight correction in the charts.
At the time of this writing, LINK is trading at $ 28.1 with a market capitalization of over $ 11 billion, making it the 9th largest cryptocurrency on the market.
According to LINK’s 4-hour chart, the coin is trading within the boundaries of an ascending channel since the beginning of the month. In the short term, this could result in a minor price correction as the break of an ascending channel formation is usually in the bearish direction.
What do technical indicators tell?
The coin is enjoying a strong resistance level in the $ 27-28 range, and if the price fails to break this level, it could move back towards the $ 25.7 support.
If resistance remains strong LINK price may see a price correction in the short term. The RSI indicator has moved away from the overbought zone and is returning its steps to the overbought zone at the time of writing.
Moreover, the MACD indicator showed a bullish trend at the beginning of the week, but at present, the Signal line is slightly more likely to register a bearish trend soon as it approaches the MACD line.
After trading in an ascending channel formation, LINK may drop slightly if it fails to cross the key resistance range highlighted on the chart. In such a scenario, the crypto could head towards the $ 25.7 support in the coming days. However, if the range is exceeded, the coin can continue to move upwards and LINK can turn resistance into a strong support.