Chainlink Analyst Explains What’s Next for LINK After 60% Price Surge in 6 Days

The cryptocurrency Chainlink (LINK) has seen a major rally recently, with prices surging 60% in just the past 6 days. However, according to analyst Cryptonary, this vertical move may not be sustainable. In a recent tweet thread, they provided technical analysis exploring whether LINK can hold these new higher levels or if a pullback is due.

Rapid Rally Raises Questions

Cryptonary started by recapping LINK’s stellar short-term performance:

Cryptonary: LINK surged 60% in 6 days: What’s next? LINK is overbought, but can it sustain at these higher levels here?”

They note that such a rapid, nearly parabolic rise often lacks durability, making a correction likely. But Cryptonary dives into the charts to ascertain LINK’s key support and resistance.

Technical Levels and Indicators Suggest Caution

The analysis highlights how LINK found support at $9.67 to enter the $10 range. But selling pressure emerged around $11, establishing resistance. Meanwhile, momentum indicators like the RSI show overbought conditions after the surge, signaling a pullback could come soon.

As Cryptonary concludes: “We would exercise caution here on LINK. The market, in general, is overheated. And with LINK being up 60% in 6 days and its technical indicators at overbought levels, you should be cautious here.”

While LINK’s strong uptrend could continue, signs point to an imminent cooldown. Cryptonary provides prudent advice not to FOMO in at unsustainable levels. Their nuanced analysis shows the importance of weighing both bullish and bearish signals to make informed trading decisions.

We recommend eToro

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
Active user community and social features like news feeds, chats for specific coins available for trading.
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

Tags:

Vignesh Karunanidhi
Vignesh Karunanidhi

Seasoned crypto writer with deep passion for blockchain and cryptocurrency

CaptainAltcoin
Logo