LINK price is trading at $12.82 after gaining 8% in the last 24 hours and 12.92% over the past week, as the broader crypto market shows renewed strength.
The current LINK price setup is drawing attention as Chainlink attempts to extend its recent recovery. Analysis from More Crypto Online highlighted $8.04 as a key level, noting that as long as LINK remains above this support, further upside remains possible.
The analyst presented two potential wave-count scenarios. In the white scenario, the current advance could represent an extension of wave 1, while the blue scenario treats the move as wave A. Although the structures differ, both scenarios leave room for additional upside before the current advance is considered complete.
Source: More Crypto Online X post
This makes $8.04 an important level to monitor. A sustained hold above it would keep the broader recovery structure intact, while a decisive break below it could weaken the current setup.
LINK Faces $13.90 to $20.60 Resistance
The next major challenge for the LINK price comes from the $13.90 to $20.60 resistance zone identified by More Crypto Online.
With LINK currently at $12.82, the lower boundary of this zone is relatively close. A move above $13.90 would therefore put the cryptocurrency into an area where stronger resistance could emerge.
Source: More Crypto Online X post
A prolonged breakout from this range will serve as an extra validation that the recovery process is continuing. However, failing to stay inside the range could lead to a retracement towards lower levels.
This trading setup thus offers many key reference points for traders: $8.04 to the downside and $13.90 to $20.60 to the upside.
Also Read: LINK Price Eyes Breakout to $12 as Accumulation and Arc Boost Demand
Chainlink Reserve Tops $70 Million
Technical infrastructure is also developing parallel to the accumulation process taking place within the Chainlink strategic reserve.
The official Chainlink reserve has exceeded the $70 million mark after a fresh $1.1 million LINK acquisition, according to the figures provided by WallStreetX. At present, the reserve has a valuation of $70.5 million, and it is also noted that there are no token sales since August last year.
It is also noteworthy that the continued buying brings further market perspective to the LINK price, especially since the reserve has continued to accumulate even though there have been changes in the market.
However, accumulation of the reserve alone does not mean that there will be an increase in the price. The technical formation must also hold the support levels and breach the resistance levels.
What Happens Next for LINK Price?
The LINK price is at a crucial technical level following the latest rally move. Maintaining the price above $8.04 allows for the continuation of the optimistic technical patterns as highlighted by More Crypto Online, while the first level of resistance stands at $13.90.
If LINK is able to clear that region and move up further, then the larger $13.90-$20.60 resistance zone will become the primary target. On the other hand, a failure to do so might mean a return to the support level.
Given that LINK is trading at $12.82 and has robust weekly momentum, the reaction at $13.90 may give early signs on whether the cryptocurrency is prepared for an extension of the rally or another period of consolidation.
Also Read: LINK Price Signals Further Upside to $18 as Chainlink Ecosystem Expands
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Be the first to comment