Is Chainlink at Risk of a Correction? | Credit: Derek Fenech
Share
Key Takeaways
Chainlink’s (LINK) price reached a 198-day high today.
LINK is trading inside a short-term ascending wedge.
Will LINK resume rallying, or has it reached a local top?
Chainlink started an impressive run in July, reaching the highest level in nearly 200 days.
However, signs of caution emerge, raising the possibility of a short-term pullback.
Let’s examine the charts and see if bulls or bears will win this battle.
Chainlink Price Analysis
Chainlink’s weekly price analysis shows a bullish trend in all aspects.
After months of consolidation, the LINK price has created higher lows inside a parallel channel since July 2024.
More recently, it bounced at the channel’s support trend line in June (green icon) before blasting from a diagonal resistance shortly afterward.
Try Our Recommended Crypto Exchanges
Sponsored
Disclosure
We sometimes use affiliate links in our content, when clicking on those we might receive a commission at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.
The momentum carried into August, when Chainlink’s price broke out from the $19 horizontal resistance and moved above the channel’s midline, where it currently trades.
If the increase continues, LINK’s price can reach the channel’s resistance near $40.
Backing up the bullish outlook, momentum indicators show strength.
The Relative Strength Index (RSI) is above 50 while the Moving Average Convergence/Divergence (MACD) is positive.
Because of all these reasons, the Chainlink prediction is bullish, suggesting that new highs are likely.
However, the short-term outlook raises some cause for concern.
Can LINK Break Down?
The daily chart shows that LINK has traded inside an ascending wedge since June.
The wedge’s support and resistance trend lines are converging, so a decisive movement will likely happen soon.
Not only is the ascending wedge a bearish pattern, but other signs support the breakdown, too.
More specifically, the RSI has generated a bearish divergence (orange), and the 0.786 Fibonacci retracement resistance level rejected the Chainlink price today.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
