(Akash Girimath – FXStreet)
– Chainlink price shows a flip of major resistance levels into support floor, suggesting the possibility of a bullish regime.
– A bounce off the $7.29 support level could lead to a 28% upswing to $9.32.
– A daily candlestick close below $6.38 will invalidate the bullish thesis for LINK.
Chainlink price shows an interesting setup after weeks of being stuck in a range. The recent development indicates that LINK buyers and bulls are back and want to enjoy gains.
Chainlink price ready for a quick uptrend
Chainlink price created two major ranges after the LUNA-UST-induced crash in May 2022. The larger range extends from $9.32 to $5.27. The smaller range, created between June 13 and June 16, stretches from $7.49 to $5.27.
For the most part, LINK has stayed inside the smaller range with no signs of a breakout. However, this outlook changed on July 27 as Chainlink price triggered a 32% upswing. This move pushed through the smaller range’s upper limit at $7.49 and the larger range’s midpoint at $7.29. Additionally, this rally also filled the four-hour price inefficiency, aka fair value gap that extended up to $7.99.
The upthrust is bullish if the oracle token can manage to stay above $7.29. Assuming Chainlink price does that, investors can expect a 28% upswing that retests the larger range’s upper limit at $9.32.
While this trade is straightforward, investors need to wait for a confirmation of an upswing, which will arrive if the altcoin holds above $7.29. On the other hand, a breakdown of this level into a resistance barrier will reveal a weakness among buyers.
In such a case, bulls have another chance to propel Chainlink price after a retest of $6.38. A daily candlestick close below this level will create a lower low and invalidate the bullish thesis outlined for LINK.