Chainlink Price: Is the Altcoin aiming for further double-digit recovery?

Biraajmaan Tamuly
Source: Pixabay

21st-ranked Chainlink is one of the top-performing assets over the past 24-hours and every week. The asset has risen 28% over the last 7-days, reaching a monthly high of $9.64. At press time, the asset was priced at $9.21 but with positive developments surrounding its space, there might be room for more recovery for the asset.

Source: Trading View

According to analysis, LINK is moving towards a supply zone or liquidity bracket between $9.84 and $10.38 at press time. Regarding pattern breakout, the asset followed a linear rise on the back of its staking announcement. However, just beyond the liquidity bracket, a strong resistance lies at $10.65, which might hinder a potential move forward.

In terms of trend direction, consolidation between the aforementioned supply zone should lead to some form of correction over the next few days at LINK might tag another lower high near support at $8.

Source: Trading View

In terms of trend indicators, the Relative Strength Index or RSI is suggestive of reaching an oversold region hence the temporary bullish momentum might reverse soon if selling pressure is built for the asset. However, according to MACD, the bullish trend continues to hold an upper hand over a bearish outlook.

What is working for LINK?

While the technicals might be a little neutral in terms of direction, Chainlink recorded strong positive sentiments. According to LunarCrush, the asset is currently the number 1 Altcoin after aggregating social and market activity.

It is well documented that assets could rally at the back of positive sentiment even if technicals do not support the narrative once in a while. Hence it is imperative to keep an eye on Chainlink over the next few days.