Chainlink (LINK) price has been struggling to maintain its momentum after failing to break above the critical resistance at $12.38.

Although the altcoin is showing signs of recovery, it has yet to recover the losses from the late August correction. Therefore, the growth potential above $11.64 remains uncertain.

According to the Global Money Inflow/Outflow (GIOM) indicator, approximately 106.89 million LINK tokens were accumulated between $11.61 and $13.24, with a supply value of over $1.2 billion.

Chainlink must break through the $12.94 resistance and turn it into support to push the price to $13.24 and make the above supply profitable. This can only be achieved through sustained bullish sentiment, which is currently lacking.

Without strong buying pressure, it will remain difficult to break through these key levels. LINK’s accumulation at these price points suggests that the market is poised for potential gains, but the demand needed to push the altcoin higher has yet to materialize.

Furthermore, Chainlink’s macro momentum suggests its rebound attempts may continue to fail. The Average Directional Index (ADX), a measure of trend strength, shows that LINK's uptrend has lost significant strength. ADX has fallen below the key threshold of 25.0, signaling market weakness.

This loss in momentum could prevent LINK from gaining the momentum needed to break above key resistance levels. Without a strong uptrend, Chainlink could continue to face difficulties breaking out above $12.38 or even higher prices.

Chainlink’s price has increased by 6.4% in the past 24 hours and is currently trading at $11.60. A breakout above the local resistance at $11.64 could take LINK to $12.38, a barrier that LINK has previously failed to break.

However, current indicators suggest that even if LINK reaches $12.38, it will be challenging to sustain the rally as bullish momentum is weak. A pullback is likely as buying power weakens.

If LINK manages to break out of $11.64 and convert it into support, a move above $12.38 is possible. Sustained bullish sentiment will further propel the altcoin upwards with the possibility of a move above the $12.94 barrier. This will invalidate the bearish outlook and generate profits for LINK holders.

in short

Chainlink is struggling to break through the $12.38 resistance level, having accumulated 106.89 million LINK between $11.61 and $13.24. Weak buying pressure and a falling ADX signal are weakening the bullish momentum, hampering LINK’s ability to rebound.

Currently, it is hovering around $11.64. If LINK breaks out of $11.64 and sustains the gains, it could move above $12.38 and aim for $12.94, but the momentum remains uncertain.