Chainlink (LINK) token has recovered in the last few days, finding support around $13 and then trading above $14. However, it was noted that LINK is facing some significant resistance levels that may limit it from making further gains in the short term.
According to popular crypto analyst Rekt Capital, LINK has currently failed to retest the weekly close above a key red resistance zone. Failure to close above this level, Rekt Capital emphasized that this zone could turn into strong resistance and force LINK to retest downtrend support.
LINK price analysis
On the daily chart, RSI readings are bullish around 67, indicating that LINK has entered overbought territory in the short term. A pullback from current levels is likely required before LINK can make a renewed move higher.
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 growing demand for real-world asset tokenization. However, altFINS noted that a strong rally from $11 to over $14 in early November has put LINK in overbought territory.
Profit taking caused a pullback, which altFINS viewed as a potential pendulum entry opportunity within an uptrend. Important upside targets are seen as psychological resistance near $18 and then $19.50.
In summary, while Chainlink’s fundamentals remain strong, the technical outlook suggests the possibility of some consolidation or minor decline over the coming days and weeks. The important support level to watch is around $13, while resistance is seen around $14.50 and $15, respectively. Patient investors may consider buying any dips as LINK establishes a base ahead of its next leg up.
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