Chainlink (LINK) continues to trade within an extended trading range. This cryptocurrency has been trading sideways for more than a year. According to analysts, there is still no clear trend in the market, though recent price action shows early signs of building momentum.
The longer consolidation has kept the asset within a large accumulation range. During this period, the asset has consistently tested support and resistance.
Yet, neither buyers nor sellers have managed to achieve a breakout. This has raised concerns that the token might trade within a range for an even longer period.
As of press time, LINK is trading at $8.96, showing a decline of 0.39% in a day. The trading volume stands at $627.09 million, down 6.86%. Over the last week, the token price has decreased by 3.09%, according to CoinMarketCap data.
Source: CoinMarketCap
LINK Tests Key Short-Term Levels
More Crypto Online, an analyst, highlighted that LINK’s recent drop from the recent swing high has developed into a five-wave pattern. Despite this, support has been maintained at $8.36 on a micro level. This has helped maintain the current trading range.
Price is now fluctuating between a micro support level and a new resistance zone. The new resistance zone is between $9.10 and $9.35. These are the new limits of LINK’s microstructure from a short-term point of view. These levels are being closely monitored by market participants as the next directional signal.
A breakthrough of resistance levels will be positive for the short-term outlook. The prospects will be boosted if LINK is able to break through the $9.35 region. Until then, the asset is trading within its range.
Source: X
Moreover, another analyst, CryptoWZRD, mentioned a daily technical analysis for LINK. The analyst indicated that LINK closed its day with an indecisive signal. According to the analysis, positive sentiment from Bitcoin is likely to impact its movement.
Also Read: Avalanche (AVAX) Consolidates Near Support with $13–$19 Resistance in Sight
The intraday chart continues to show trading in a range. $9.55 has been identified as an important resistance level by analysts. Breaking through that level could lead to long positions. For support, $8.20 could be the next target if there is any weakness in price.
Source: X
Trading Volume Declines as Open Interest Slightly Falls
According to CoinGlass data, the trading volume fell by 12.19%, bringing it to $426.95 million. Open interest also declined slightly by 0.81% to $375.13 million. The LINK OI-weighted funding rate stands at 0.0007%. This level shows balanced positioning between long and short traders.
Source: CoinGlass
The data of liquidation in the past 24 hours indicates moderate activity. The total liquidation was recorded at $340,860. Long positions amounted to $299,810. However, short positions were recorded at $41,040.
Source: CoinGlass
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
