In this new Wednesday crypto nugget, we take a look at the cryptocurrency of an essential project for many blockchains, LINK. Although the project continues its expansion and evolutionLINK is not in the same frame of mind as the range in which it has evolved since more than a year. Will it be able to resume its upward momentum? Let’s find out without further ado on TradingView.
LINK below weekly resistance, buyers in trouble
When you look at the chart, it’s impossible to miss the technical figure in which the LINK cryptocurrency has been evolving for over a year: the range. Evolving between a low limit at 5.53 dollars and an upper bound at 8 dollarsthe asset fluctuates between these two zones, as well as a pivot level at $6.66 (represented by the blue line). Having been rejected once again on the resistance zone, it is now heading for the pivot. If it loses this level, LINK will head back towards the resistance zone. lower boundaryunless it manages to hold above it on a rebound.
As long as LINK remains within the range, there’s no nothing special to do on the weekly scale. For investors wishing to place their bets, the best thing to do is to wait for the next trading day. return of the price to the lower limit, or ideally even below it (as in June). However, placing yourself on the pivot zone is the riskiest moment since both scenarios are possible.
LINK is back one more times on its resistance. However, this has always resulted in a strong downward rejectiondemonstrating that the asset is not not yet ready for an upward turnaround. For that day to arrive, the asset will have to break out of the technical confluence including oblique and horizontal resistance, with a weekly close above 8.30 dollars. So, let’s turn to the daily scale to try and get a clearer view of the range.
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An inevitable bearish scenario?
For our second part of the analysis, on a daily scale, we can see that LINK is in an unfavorable situation for buyers. So, what can we expect over the coming weeks? First of all, it’s very unlikely to see an exit from the rangeWhether on the upside or the downside, LINK will probably continue to lateralize. From a purely technical point of view, in view of the descending lows over the last few weeks, LINK has a chance of break below the pivot of the $6.65 range.
In this context, we can expect the scenario depicted on the chart with a back towards $6which would lead to a rather significant for one of the key projects in the Web3 ecosystem. Of course, this will probably come with some reactions on technical levels that you can identify on the chart. In this context, for the start of the 2023 school year, it is possible to have LINK at 5.5 dollars if no buyers come forward.
Here we are at the end of this technical analysis of LINK. Currently in an unfavorable situation, investors are losing interest of an asset that has been in range for over a year. Approaching its pivot, it is now that buyers will have to come forward to « save » the asset and bring it down to $8. If they fail to do so, and the asset closes below on a weekly basis, then it will will probably follow the bearish scenario shown on the chart.
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