Chainlink at Crossroads: Key Levels to Watch for a Breakout

• LINK faces key resistance at $24.05 and $26.05, pivotal for a surge to $28-$30.
• It has long liquidations of $580.93K and short liquidation of $56.44K; DMI shows a bearish trend.
• The RSI at 58.98 suggests that the asset is neutral but approaching overbought territory. 

Chainlink (LINK) has recently registered a notable retracement. At press time, the trading rate is $21.25, down 9.12%, which has raised concerns about the asset’s near-term price movement. Traders are keen to see if the cryptocurrency can hold support or extend the decline. Analyzing price action helps understand future movements of LINK, liquidation trends, and technical indicators and provides more information.

The LINK chart shows the cryptocurrency is close to key support at $21, with critical resistance levels at $24.05 and $26.05. Resistance levels have been set at these points in the past, and a breakout above these levels would likely trigger a price surge toward $28 and $30. This is an upside of 20-40 percent from the current price.

Nevertheless, if the LINK price does not surpass these resistance levels, it may consolidate or decrease. If support levels at around $21 or lower fail to hold, it could fall to $16-$17 range. Therefore, LINK’s future relies on these resistances and sustaining this price upsurge. A long-term price prediction aims for $50+ if the key resistance is breached.

LINK Liquidations: Are Traders Betting on a Reversal?

The liquidation chart shows mixed activity, with LINK’s Liquidation data revealing significant positions in both directions. Long positions are more prominent here, with total long liquidations at $580.93K, whereas short liquidations at $56.44K.

This suggests that traders remain optimistic about LINK’s potential upside. However, the ongoing struggle to break resistance at $24.05 and $26.05 could cause additional liquidations, particularly in the long positions. If the price cannot hold its ground or break resistance, further long-position liquidations could pressure the market downward.

LINK Technical Indicators: What Do RSI and DMI Suggest?

According to the Relative Strength Index (RSI), Link is neither overbought nor oversold, maintaining a neutral momentum. This level means the price can either go up or down depending on market conditions. The Directional Movement Index (DMI) reveals that buying pressure is still intact, with a +DI value of 30.4 compared to the -DI value of 5.9. 

However, a divergence between these two indicators indicates a potential weakening of buying pressure if LINK fails to overcome resistance levels. While the DMI still reflects bullish pressure, a shift toward bearish momentum is possible if selling pressure increases.

Conclusion

Chainlink is at a critical crossroads. The cryptocurrency has to advance above $24.05 and $26.05 to advance further. If those levels are intact, a continuation to further consolidation or a breakdown to lower support levels around $16-$17 is possible. 

However, in the long term, targets are available above the $50+ if LINK overcomes the key resistance levels. The next few days will likely determine whether the market will regain bullish momentum or face further downside.

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