Chainlink Price Surges 7.22% After Breaking Key Resistance at $8.0

Chainlink Price Analysis: Bullish Momentum Builds

Chainlink's price has shown strong bullish momentum, breaking above the key resistance level of $8.0 and surging over 7.22% in the last 24 hours. Currently trading at $8.23, LINK's price action indicates a clear uptrend, with immediate support at $8.0, which aligns with the 23.6% Fibonacci retracement level of its recent price swing.

Technical Indicators Signal Continued Uptrend

The daily chart reveals six consecutive bullish candlesticks, forming an ascending pattern that reflects a strong uptrend. The price is well above the moving averages, indicating high buying pressure. The Bollinger Bands are expanding, signaling increased volatility, with the upper band touching $8.35, just below the next key resistance at $8.5.

The Relative Strength Index (RSI) is at 60.12, approaching the overbought region, while the MACD line remains above the signal line, reinforcing bullish sentiment. On shorter timeframes, the 4-hour and hourly charts also show price action above the 200-day and 50-day simple moving averages, further supporting the bullish outlook.

Near-Term Outlook: Key Levels to Watch

While the market remains bullish as long as prices stay above $8.0, a potential bearish reversal could occur if prices drop below this level. The first support level is at $7.8, coinciding with the 50-day simple moving average. A break below this could push prices toward $7.55.

On the upside, bulls are targeting $8.5 as the next key resistance. If buying pressure continues, the upper Bollinger Band could extend to this level, signaling a potential price target for the near term.

Conclusion: Chainlink's Uptrend Persists

Chainlink's price action and technical indicators suggest a continued uptrend in the near term. As long as prices remain above $8.0, the bullish momentum is likely to persist, with $8.5 emerging as the next significant resistance level. However, traders should remain cautious of potential corrections, as indicated by the RSI nearing overbought levels and the possibility of a bearish MACD crossover on the hourly chart.