Chainlink: Can 7% Pump Trigger New Wave of Bullish Gains?

Chainlink's (LINK) bullish momentum faces resistance at the $16.5 level, with buyers unable to break through. Despite a shift in sentiment in the overall crypto market, bulls remain active, keeping price above the $12.7 support. This bullish stance suggests potential for further gains if buyers can overcome the $16 resistance, mirroring a previous price action that resulted in a 61% surge.

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.

LINK/USDT on TradingView (Daily Timeframe)

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.

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