Smart contracts have quickly developed into a whole new dimension of new technology supported by the existing blockchain network. Chainlink aims to ratify smart contracts bringing its achievable target of $50. The price action on chainlink has been ahead of major crypto leaders in terms of consolidation and breakout.
After retesting its support and buying sentiment over an entire week, chainlink has finally inched closer towards 200% returns concerning July lows. Although there is a huge gap from its all-time high levels of $53, there is no strong resistance to the current trend. Buying sentiment and interest will be instrumental in deciding the future movement on Chainlink.
In comparison to April and Mid-May sentiment, the current trend aligns with the positive sentiment. Let us analyze the price action concerning key technical levels and indicators for better clarity.
Chainlink Price Analysis
Chainlink has already broken out of its retesting phase and currently faces a stiff dilemma in trading upwards or retracing to immediate support levels. The price action will be determined by the movement for the 30 Days Moving Average placed currently at $28.91.
Chainlink has strong support coming around its retested levels of $23, followed by immediate support at $29. On the upside, there is a slight resistance at current levels of $35, but the tougher resistance would come around $43. Since the all-time high of Chainlink comes around $53 levels, we cannot consider just the possibilities. Chainlink is still 58% away from its all-time high. Facing turbulence can force Chainlink to retest the $29 levels and consolidate for a longer duration before giving a clear breakout.
Although the technical indicator, RSI, shows overbought zones, the valuation is much lower than the 2021 highs. Hence, one should get it clear that Chainlink will be moving only 15 – 20% in one rally before consolidation as per our Chainlink forecast. Volumes have risen, and immediate resistance is 26.2% away from its last traded value of $33.50.
There can be seen a severe dip in price movement from facing difficulty in breaching $35 psychological levels. Consistent red candles of higher intensity have shaken some buyers. However, pin bar candle formation supports buying action as it is formed when sellers break off their trades and buyers re-engage.
A major concern would be dipping RSI levels that tanked from overbought zones of 81 to mildly bullish to a neutral level of 55 in just three hours.