In the wake of significant market volatility spurred by the recent Jackson Hole Symposium, Chainlink (LINK) is exhibiting a constructive technical posture that suggests a potential bullish continuation. According to a detailed market analysis, the cryptocurrency has concluded a recent trading session with strong bullish indicators, positioning it for a potential challenge of higher resistance levels after rebounding from a deeply oversold territory.
An influential analyst, known as CryptoWzrd, highlighted that both Chainlink’s USD pairing and its Bitcoin pairing (LINKBTC) registered bullish daily candle closes. This development is significant as it indicates a potential shift in momentum favouring buyers, especially on higher time frames. The rebound from what the analyst described as an “extreme oversold condition” reinforces the probability of follow-through strength, laying a technical foundation for a sustained upward trajectory.
The roadmap for Chainlink’s potential ascent is delineated by several key price thresholds. The primary daily support level to watch is pegged at $20. Maintaining this floor is considered a prerequisite for preserving the broader bullish outlook. On the path upwards, the immediate hurdle is the $30 resistance zone. Based on the current momentum, the analysis suggests this level could be surpassed with relative ease. A decisive break above this would open the door for a test of the more formidable $40 resistance in the coming days.
LINK build upside momentum | Source: Chart from CRYPTOWRZD on X
The intraday charts reveal a narrative of extreme volatility, a direct consequence of the market’s sensitivity to macroeconomic cues from the Jackson Hole meeting. This environment, while fraught with risk, also presents strategic openings. A tactical long setup has been identified: a potential pullback to below $26,50, followed by a clear bullish reversal signal, could provide an attractive entry point. The targets for such a trade would extend toward $31 and potentially higher.
However, caution is advised. Should Chainlink fail to reclaim ground above the $26,50 pivot and instead consolidate below it, the market could descend into a period of sideways, range-bound trading. As the market heads into the weekend, traders will be closely monitoring intraday chart formations for confirmation of the bullish thesis, mindful that lower liquidity conditions could influence price action.
Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Investors should always conduct their own thorough research and consult with a qualified financial advisor before making any investment decisions in cryptocurrencies, which are highly volatile and speculative assets.
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