Technical analysis $LINK
General trend 📉
On the chart you can observe a downward trend, which is confirmed by the trend line passing through the highs. After a long decline, the price several times tested support in the area of $13.2 - $13.5, which creates a strong support level (green zone).
Current situation 🔍
Trendline Breakout: The price has broken through a descending trendline, which is a positive signal for a potential reversal.
Trading Above the 200-Day Moving Average: The red line on the chart represents the 200-day moving average. The price is trading above this line, which indicates a possible change in the trend to an upward one.
Ichimoku Cloud: The price is also above the Ichimoku Cloud, which is another positive indicator.
Key levels 📏
Support: $13.2 - $13.5
Resistance: $19 - $20 (Ichimoku cloud area)
Potential scenarios 📈📉
Bullish scenario: If the price can maintain above the 200-day moving average and the Ichimoku cloud area, further growth is possible towards the resistance levels of $19 - $20.
Bearish scenario: If the price returns under the 200-day moving average and into the Ichimoku cloud, a retest of the support level of $13.2 - $13.5 is possible.
Conclusion 🔔
Currently, ChainLink (LINK) is showing signs of a possible trend reversal after breaking out of a descending trendline and trading above the 200-day moving average. However, to confirm this signal, it is important that the price remains above the current support levels and does not fall back under the Ichimoku cloud.