LINK Is Riding Bullish Momentum, Just Around Its Level of Resistance

Recent price action is an indication of buying interest, promoting it for upside, and support levels remain intact, and market mood is optimistic overall.

LINK, the token powering the Chainlink network, is showing signs of bullish momentum as it trades above a key support level and is approaching a critical resistance zone.

According to CoinMarketCap, LINK is currently trading at $15.75 with a 24-hour trading volume of $529.39M and a market cap of $10.32B. The token’s price has been affected by market fluctuations in the last 24 hours and week. However, in the last month, it’s up by 17.58% and has potential for recovery post-breakout.

One crypto analyst highlighted that LINK is now around the crucial $16 resistance, with the market showing no clear direction. The price is caught between the unpredictability of the market and the momentum that is pushing it upwards.

As buyers and sellers engage in a heated battle for control, the token’s price action is becoming increasingly indecisive. Such trading is one indication of the mounting pressure on the token as market players wait anxiously for that breakout moment.

$16 has remained a critical level of resistance for LINK, and its testing is bullish for momentum, which can push it to an even more powerful push. Such movement might turn LINK into an attractive trade for momentum players, provided it is supported by strong market sentiment and solid trading volumes. In the meantime, it is in a critical position; this breakout might decisively turn momentum towards $16.80.

Another crypto analyst noted that Chainlink has broken above an Inverse Head and Shoulders chart pattern, one of the classic signs of an imminent reversal in favor of an uptrend following an established downtrend. Following the breakout, coin pulled back to revisit the $14.90 neckline, which has since acted as a reliable support level.

According to the analyst, support is now building at the $13.90 level, which is also the 38.2 Fibonacci retracement level.

With support building and momentum gaining, LINK is positioned to potentially experience an upswing. Top targets of this upswing include $17.60, $19.60, and $21.60. Yet, Bitcoin’s price action is still one of the main unknowns that might affect LINK’s chances to reach these targets fully. However, the technical setup is strong enough to support movement towards at least the first two levels of resistance, assuming overall market conditions remain supportive.