- Chainlink price is close to breaching a key hurdle at $7.59.
- A successful flip of this critical resistance level could trigger a rally that yields 30% to 60% gains.
- This bullish thesis will be invalid if LINK breaks below the $5.53 support level.
Chainlink price has been trading broadly sideways for more than a year. However, the sweep of a key level has kickstarted a rally that is currently at a key hurdle at $7.59. A breach of the said blockade will likely allow LINK bulls to extend their run-up.
Also read: Chainlink price being negatively correlated to Bitcoin results in profits for LINK holders
Chainlink price ready to recover losses
Chainlink price created the $5.53 to $9.66 range in May and June 2022, and since then the altcoin has been trading inside it. After a sweep of the $5.53 level on June 5, LINK triggered a 77% rally from $4.76. Although the Oracle token managed to flip the midpoint briefly, it failed to sustain its ascent.
Now, Chainlink price trades around the midpoint of the aforementioned range at $7.59. The Relative Strength Index (RSI) and the Awesome Oscillator (AO) have both flipped above their respective mean levels at 50 and zero, indicating a resurgence in bullish momentum.
A successful retest or a pullback would be in the bulls’ favor. A dip would be bought by sidelined buyers, hoping to ride the next Decentralized Finance (DeFi) wave. Therefore, investors should keep a close eye on Chainlink price, which could trigger a nearly 30% ascent to retest the range high at $9.66. In an even more bullish case, LINK could tag $11.92 – which is a high timeframe barrier – and register gains of almost 60%.
LINK/USDT 1-day chart
While the weekly chart exudes optimism, investors need to watch for Chainlink price rejection at $5.53 to $9.66 range’s midpoint at $7.59. If LINK continues its descent without a rescue from buyers, it would signal a shift in investor sentiment.
If Chainlink price flips the $5.53 support level into a resistance, it would create a lower low and invalidate the bullish thesis. Such a development could lead to a revisit of the June 5 swing low at $4.76, which would represent an around 35% decline from current price levels.
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