Chainlink Builds Rebound Setup, Targets $15 Upside

Chainlink is demonstrating increasing strength as it stabilizes above a very important support area. The LINK token is consolidating around $13 after a long period of correction. 

This price action indicates that downside pressures are disappearing. The future outlook based on the market structure is inclined to a possible upward continuation to $15.

LINK also traded around $12.80 in the last few trading sessions. This has been a dependable demand zone in past pullbacks. In this zone, there is less chance of additional breakdown. It also gives buyers the opportunity to regain control slowly.

Chainlink Establishes Rebound Framework 

Price action displays smaller ranges on the daily chart and fewer sharp sell-offs. The directional expansion is usually preceded by such compression.

In this instance, the arrangement is pointing towards the formation of higher lows. Traders are setting up their positions as they expect more rebounds. According to Crypto analyst CRYPTOWZRD, LINK is trading in a thin intraday range. 

He sees this as a consolidation, not a weak move. These types of consolidation normally lead to a breakout on the upside. Even a retest of the $12.80 level will be a good indicator, according to Cryptowzrd.

An aggressive reaction from that level would solidify a bullish trend. He also observed that once LINK breaks out of $13.50, it could lead to further gains and increased momentum.  

Source: X

Also Read | Chainlink (LINK) Eyes $30 Target as ETF Approval Sparks Renewed Demand 

Signs of Accumulation 

According to TradingView, the volume level is stable, indicating the consistent involvement of buyers. At the present levels, no panic selling is evident. 

This contributes to the opinion that accumulation is taking place. On the daily timeframe, LINK price is close to its session VWAP.

VWAP alignment can also display a fair value during periods of consolidation. With the price close to the VWAP, the breakout would be more sustainable. 

In addition, an increase in volume to become greater than VWAP would mean a continuation of the upward trend. If the price remains above VWAP, buyers will enjoy a positional advantage. 

This kind of setup offers enough time for the momentum to build up without an extreme effort. Such circumstances normally happen before a steady increase.

VAWP. Source: TradingView

LINK Momentum Builds Toward $15 

Momentum indicators are also performing well. The Relative Strength Index is fluctuating around 50. This is an exhibition of neutrality with the possibility of further upside growth. 

RSI stability implies that buyers can comfortably drive its price up. This is in line with initial bullish recoveries. 

Bearish momentum is disappearing gradually on the MACD indicator. The flattening of the histogram bars was a result of a long period of negative phase. 

This is normally an indication of trend exhaustion instead of a continuation alongside lower levels. 

A positive MACD crossover also confirms that momentum will continue to the upside. Momentum may pick up speed once LINK regains and exceeds over $13.50. 

The next obvious upside target will be the $15 level. A shift to the $15 would affirm the formation of a bullish inverted setup.

MACD and RSI. Source: TradingView

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