Recent months have not seen a great performance from Chainlink (LINK). Like many of the altcoins, LINK’s price dropped in May.
While it has little sign of recovering anytime soon, it could experience some gains over the next week or two. If key resistance levels are flipped to support, there could be buying opportunities.
Since May, LINK’s price has ranged between £8.17 and £5.7. The bulls have encountered two strong resistance zones during these months. These zones correspond to the midpoint and range highs at £6.45 and £8.17, respectively.
A test of the mid-range in late July made LINK retreat to the £6.15 region. In August, the price was able to successfully overcome this resistance, and turned the £6.66 mid-range to support.
Bitcoin’s bearishness caused a lot of market-wide selling as August went on. From the range highs, LINK fell to £5.60. The most important resistance levels to watch out for at press time were £6.15 and £6.66.
The daily Relative Strength Index (RSI) was taking its time to rise above the neutral 50 level. As a result, according to the indicator, the momentum remained bearish.
It could ascend past 60 and reach the area of strong bullish momentum in the event of LINK flipping this level to support. The 55-period SMA was above the 21-period SMA. Hence, neither did the moving averages exhibit bullish momentum.
Additionally, the On-Balance Volume (OBV) was positioned at a critical May resistance. Early in August, this level was broken, but the bulls failed to maintain their position. Another upward movement could occur over the next few days, hinting at significant buying pressure.
The OBV and RSI being able to surpass their respective resistance levels would strengthen LINK’s bullish bias. However, the £6.15 and £6.66 were major barriers at the time of writing. Before LINK bulls can push a move to the £8.19 range highs, these resistances must be flipped to support.