Key Resistance Levels: $4, $4.26, $4.5
Key Support Levels: $3.47, $3, $2.63
While most top altcoins dropped below their immediate supports following the recent fall in Bitcoin’s price, Chainlink has managed to hold strong above a key demand level at $3.47 after many rejections.
The price is trapped in a tight range of $3.47 and $3.85, following a sudden drop from $4.26 last week. Chainlink is currently struggling around $3.70 against the US Dollars after losing 1.69%.
Link’s bullish trajectory remains valid as long as the channel pattern holds. But the price is currently indecisive, suggesting a potential breakdown or continuation as indicated on the 4-hours chart.
In case of a drop, Chainlink would need to break below the orange demand area at $3.47 before decreasing further to $3. The next significant support is located at $2.63, all marked orange on the price chart.
Link could resume an upward trend if the channel’s lower boundary continues to act as a support. Reclaiming $4 would give a green light for the market. The price may climb back to $4.26 resistance (last week’s high) before breaking further to $4.5 and above.
For now, Chainlink is in the middle of a consolidation. The next actual direction of the market is yet to be ascertained.
Key Resistance Levels: 45000 SAT, 52700 SAT, 55000 SAT
Key Support Levels: 37566 SAT, 33372 SAT, 30000 SAT
Against Bitcoin, Chainlink is starting to show strength again, but the price is currently down by 4% at the time of writing.
After witnessing a three-week decline, it found base support around 37566 SAT as predicted in our previous analysis. In fact, Link quickly bounced after testing the lower boundary of the channel forming since September 2019.
It is now priced at 41391 SAT following a four-day increase to 44000 SAT resistance level. The price is likely to reach the upper boundary of the channel if demand becomes heavy.
As can be seen above, Chainlink could be preparing for a short-term rally. Looking ahead, a key resistance is near 45000 SAT. The next level to watch above this is the 52700 SAT level, followed by 55000 SAT, around the channel’s resistance.
On the downsides, Chainlink is holding base support at the 37566 SAT level, around the channel’s lower boundary. In case of a breakdown, support to watch out for is 33372 SAT, followed by 30000 SAT.
Considering the current price setups, the momentum is still in favor of the bulls for now.
