The past week has been a period of relief across the crypto space as Chainlink posted 15% gains after locating new support. However, it currently appeared weak as it looks poise for drops daily. 

Link closed last month on a bearish note after a strong recovery from an 11-month low. This led to a weak start for the asset this month, but it surprisingly found new support at $8 last week. 

The price bounced and increased consistently until it tapped a high of $11.5 on Friday. Unfortunately, the bears didn’t allow further push and the buying pressure halted. The price fell and now looks weak with a 3% loss in the last 24 hours. 

A continuous drop from the current trading level could trigger huge losses capable of causing another leg down in the next few days. As of now, the bulls have slightly lost control on the day, but there’s still room for an increase if they regroup well. 

Nevertheless, Link’s performance has been very impressive over the past couple of days following a steady increase to a multi-week high. 

A surge above last month’s high should signal a breakout. This breakout will remain invalid until the price crosses above the falling channel, forming since March.

If the bulls managed to regain momentum, their next key target would be $12.7 – August high – with a potential surge to $13.9. Resistance above this channel is $15.2. 

The current price weakness may trigger another dip in the market if the bulls fail to intercept. In this case, the possible support for drops would be $9.3 low, considered as a monthly low. The mentioned August’s low is the next before breaking to $7 around the channel’s lower boundary. 

Key Resistance Levels: $12.7, $13.9, $15.2

Key Support Levels: $9.3, $8, $7

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.

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Image Source: iuriimotov/123RF // Image Effects by Colorcinch

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