Overview of Chainlink
• Chainlink [LINK] prices tested the former resistance at $7.35 as support on 26 July and the bulls managed to push prices higher once more.
• The $8.5-$8.8 resistance zone is vital for the bulls to secure in order to drive the rally past $9.
• A move past the $8.8 level would show long-term buyers that the past year’s slump could be beginning to change.
Bullish Sentiment for Chainlink
The lower timeframe bullish sentiment might not yield a breakout past the $8.8 or $9 levels as Chainlink was stuck beneath this area for over a year. However, the price action on the 4-hour chart flipped bullishly once more as the uptrend continued, indicating that LINK investors with a longer time horizon can wait for a clear setup when it breaks above this resistance zone.
Technical Indicators Pointing Towards Bullish Outlook
The Relative Strength Index (RSI) and On Balance Volume (OBV) showed bullish intent, with RSI breaking out past 50 mark while OBV trending higher over recent days boding well for Chainlink buyers. Data from Coinalyze also reflected positive sentiment as Open Interest began to climb higher and spot CVD noted higher lows after 26th July indicating speculators bidding LINK once more..
The bearish order block (red box) extended from $8 to $8.8 and derived from 1-day timeframe making it difficult for LINK to break through this level since May 2022, meaning even though there is short-term bullish pressure, it could have a hard time climbing beyond this region unless it retests of the $8.5-$ 8.8 region which presents buying opportunity in coming months if move above 9$.
Chainlink [LINK] has been trapped below its key resistance zones for over a year now but indicators suggest that there may be an opportunity to buy LINK if it is able to break through these levels in future months by retesting its support at $ 8.5 -$ 8. 8 region which could lead towards further upward movement beyond 9$.