Chainlink’s Bullish Momentum Stalls at $11.5 Resistance Level
Despite a pullback at the $11.5 resistance level, Chainlink (LINK) has maintained its strong bullish uptrend. The altcoin experienced a remarkable 53% rise in the past week, breaking through a year-long resistance at the $10 price level.
Buyers Remain Active Despite Resistance
Previous analysis from AMBCrypto warned buyers about the resistance level between $11 and $12 on higher timeframes. Although there was a pullback at this level, the price action and on-chart indicators suggest that the bullish trend will continue.
LINK Buyers Show Strong Momentum
The Relative Strength Index (RSI) indicates significant buying pressure, remaining in the overbought zone since October 21. This demonstrates the strong buying power behind LINK’s upward movement. Additionally, the positive Chaikin Money Flow (CMF) reading of +0.11 suggests sustained capital inflows for LINK, indicating investor interest in bidding higher in the spot market.
With many buyers still active, the pullback at $11.5 may serve as a minor correction before the uptrend continues. However, if sellers extend the retracement to the $10 support level, buyers will need to defend this price to resume the upward movement.
Short-Term Demand Dip Requires Caution
How much are 1,10,100 LINKs worth today?
According to data from Coinalyze, funding rates for LINK futures remained positive, indicating more speculators willing to buy LINK. However, the spot CVD revealed a decline in demand on the four-hour timeframe, potentially due to short-term holders taking profit. Long-term holders may want to wait for a drop to the $10 support level, as it could present a better opportunity for new buyers.
### News source: ambcrypto.com