Chainlink faces persistent resistance at $12.38 amid attempts to recover from late August losses. This casts doubt on its potential for sustainable growth beyond $11.64.
Chainlink Market Situation
Chainlink (LINK) finds itself at a critical juncture as it grapples with persistent resistance at the $12.38 level. Despite signs of recovery, the altcoin has yet to fully recoup losses from its late August correction.
Global In/Out of Money Statistics
The Global In/Out of the Money (GIOM) indicator provides crucial insight into LINK’s current market dynamics. Approximately 106.89 million LINK tokens, valued at over $1.2 billion, were accumulated between $11.61 and $13.24. This substantial supply zone presents a formidable challenge for Chainlink’s upward trajectory.
Technical Analysis and Forecast
Technical indicators suggest weakening bullish momentum, complicating potential rallies. The Average Directional Index (ADX), a key indicator of trend strength, has dipped below the critical 25.0 threshold. This decline signals a major weakening of LINK’s uptrend. Despite these challenges, LINK has managed a price increase over the past 24 hours, currently trading at $11.60. The immediate focus now shifts to the local resistance at $11.64. A successful breach of this level could open the door for a test of the previously insurmountable $12.38 barrier. However, current market indicators suggest that even if LINK reaches $12.38, sustaining gains above this level may prove challenging.
Chainlink continues to face significant obstacles on its path to sustainable growth. Despite recent recovery efforts, weakening bullish momentum and statistical data indicate that significant efforts will be needed to overcome the current resistance levels.
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