Chainlink price has been trading in an upside channel for the past few trading sessions. The altcoin has managed to cross the $8 level, it is now eyeing the next important resistance mark. The technical outlook of the coin has turned positive due to increasing buying power on the chart.
In the last 24 hours, the coin has risen 2% on the charts and in the past week, LINK registered a 14.7% appreciation. Chainlink price also managed to revisit the $8.80 mark, however, the coin has experienced tough resistance at that price mark.
For Chainlink to move beyond the above price range, buying power in the market must remain high. Once LINK breaks above the $8.80 price range, it could target $9, rendering the bearish thesis completely invalid. It is important to note that a small drop in altcoin demand could bring the bears back.
Chainlink price analysis: 4-hour chart
The link was priced at $8.72 at the time of writing. The altcoin briefly retreated after touching the $8.80 price mark. The immediate price range for LINK was $8.80 and a push above that level would push the price of Chainlink up to $10.
LINK has a local support level of $8.16 and a fall below this will take the coin trading closer to the $7.60 price mark. Chainlink traded volume increased in the previous session. This reading meant that bullish pressure had started building in the market and buying power had increased in the previous trading sessions.
The altcoin has shown an upward trend in an ascending trend line. Chainlink price formed higher highs and higher lows indicating a positive price move.
If the LINK does not break the immediate resistance mark, the coin may lose its current price momentum.
The altcoin had just visited the overbought zone, after which it traveled south for some time. The relative strength index was positive above the 60-mark, indicating increased buying power.
Chainlink price was trading above the 20-SMA line. A reading above the 20-SMA line indicates that buyers were driving the price momentum into the market.
LINK is showing a bullish buy signal on the four-hour chart. The indicators also captured the increase in demand. Moving Average Convergence Divergence depicts the current price momentum and a possible reversal in the same. MACD made a bullish crossover and formed a green signal bar on the indicator.
These green signal bars are buy signals for the coin. If buyers continue to act on this, Chainlink price could soon cross $8.80. Parabolic SAR shows trend, however, the indicator has not painted a positive picture. It started to form a dotted line above the candlestick, this could happen in anticipation of a drop in price in the next trading session.
Featured image from Yahoo Finance, chart from TradingView.com