LINK Struggles for Momentum as Resistance Levels Begin to Weigh
Chainlink (LINK) showed early signs of strength after recovering from a recent low near $15.41, but its upward momentum appears to be slowing as it faces a cluster of resistance levels.
While buyers managed to push the price back toward the $17 region earlier in the week, LINK is now showing hesitation around the $15.52–$16.11 resistance zone, where selling pressure has repeatedly emerged in recent sessions.
That cooling off comes just as momentum indicators, like the Relative Strength Index (RSI), enter the high-neutral zone. Although the RSI remains above the midpoint, indicating bullish strength hasn’t fully faded, it also reflects waning buying enthusiasm compared to previous days. Price action has also stalled slightly above the 9-day exponential moving average, suggesting LINK may be at a critical decision point between continuation and correction.
MACD Shows LINK Momentum Exhaustion
The MACD, which had been steadily rising, is now beginning to flatten. The histogram has flipped briefly negative, indicating that bullish momentum is losing its grip. This kind of behavior often precedes a consolidation phase or a minor pullback. While a decisive breakout above $16.11 could invalidate this hesitation and reignite buying interest, the broader signal from the MACD is one of a maturing uptrend, not an accelerating one.
Daily chart for LINK/USD (Source: GeckoTerminal)
On the downside, immediate support for LINK lies at $14.46, followed by deeper support at $13.74 and $13.65. These levels have previously acted as bounce zones and would be critical if LINK sees another leg lower. On the upside, a firm close above $16.11 would re-open the path to test $17.39 and possibly retarget higher highs beyond $18. However, until then, the price action suggests more chop than charge.
Potential LINK Trade Setups
For long entries, traders may want to wait for a confirmed breakout above $16.11 with volume to ride any momentum toward $17.39 or higher. Alternatively, a retracement into the $14.46 support zone could offer a better risk-reward setup, provided momentum remains constructive.
For short positions, fading any weak rallies near $15.52–$16.11 could be a viable strategy, particularly if RSI continues to decline and MACD confirms bearish divergence. However, caution is warranted as shorting in the absence of a clear trend reversal remains risky.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Ecoinimist is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
