Chainlink’s LINK token has been on an impressive run over the past several weeks, surging 133% from below $5. However, according to expert analyst Rekt Capital, LINK now faces one final test as it approaches a major historical resistance level.
What you'll learn 👉
Breakout from Months-Long Consolidation
After being range-bound for nearly 5 months, LINK finally broke out about a week ago. Since then, the price has continued climbing, moving from below $9 to just under $12 at the time of writing.
As Rekt Capital summed it up, “Chainlink is killing it.” This powerful breakout comes after a prolonged period of consolidation between $5-$9.
Last Major Monthly Downtrend Awaits
However, Rekt Capital cautions that LINK is now approaching “an area of historical resistance, confluent with the Monthly Macro Downtrend.” This represents the final major downtrend for LINK on the monthly timeframe.
While some rejection of this level could occur in the short-term, Rekt Capital notes this barrier should eventually give way: “No doubt Chainlink will break this one over time as well.”
Decisive Move Could Set Future Trajectory
In short, LINK faces a decisive test as it confronts this last monthly downtrend line and historic resistance zone. A convincing break above this barrier could pave the way for significantly more upside. But if LINK sees rejection here in the short-term, that could lead to a pullback before another attack on this critical overhead resistance.
Either way, LINK remains in a clear uptrend after breaking its multi-month consolidation. Overcoming the final monthly barrier ahead could mark a major milestone for the cryptocurrency.
We recommend eToro
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.
