The Chainlink (LINK) token has recovered over the past few days, finding support around $13 and then trading above $14. However, it noted that LINK is facing some important resistance levels that may limit it from making further profits in the short term.
According to popular crypto analyst Rect Capital, LINK has currently failed to retest the weekly close above the key red resistance zone. Upon failure to close above this level, Rect Capital stressed that this area could turn into strong resistance and force LINK to re-test downtrend support.
link value analysis
On the daily chart, the RSI reading is bullish around 67, indicating that LINK has entered overbought territory in the short term. A pullback from current levels may be needed before LINK can make fresh advances.
Analytics firm altFINS is optimistic about LINK’s long-term prospects, noting that its position as a leading oracle data provider will allow it to capitalize on the growing demand for real-world asset tokenization. However, altFINS notes that a strong rally from $11 to over $14 in early November has put LINK in overbought territory.
Profit taking led to the decline, which altFINS viewed as a potential pendulum entry opportunity within the uptrend. Important upside targets are seen as psychological resistance near $18 and then $19.50.
In summary, while Chainlink fundamentals remain strong, the technical outlook suggests the possibility of some consolidation or minor downside in the coming days and weeks. Important support levels to watch are around $13, while resistance is seen around $14.50 and $15 respectively. Patient investors may consider buying on any dips as LINK establishes a base before its next move higher.