Chainlink’s Price Continues to Hold Firm While LINK Outperforms BTC, ETH, and XRP

Chainlink was seen making some fresh gains in today’s trading session as its native token LINK continued to have significant conviction, whereas several major crypto assets saw limited conviction during the trading session.

Chainlink was trading close to $9.79 on TradingView at the time of this writing. Price remained on the high side of the recent range, with traders catching the attention of whether LINK can break back to $10 or trudge along to a break in this critical resistance area.

LINK Holds Its Ground Near $9.79

The price of Chainlink on the 30-minute chart is trading around $9.789, with a gain of 0.19% at the time of writing. The chart reveals that LINK bounced off the $9.40 level earlier this week before building steadily to the $9.80 zone.

That’s because the buyers have remained above the lower Bollinger Band. The lower band was in the area of $9.72, and the middle band was in the area of $9.84. The upper band was set around $9.95, just under the $10 level, which has been considered “psychological” because it is close to the $10.00 mark.

The price area is also supported by the BraveNewCoin data, which shows LINK to be near the high $9 price area. This will help keep a limited but significant focus on the market between the 9.72 support and 10 resistance.

LINK continues to trade above $9.72, with buyers taking the opportunity to further test the tops of the range. The outperformance claim could erode rapidly if the price drops below this point.

Chainlink Shows Relative Strength

LinkBoi’s post was about LINK’s strength against BTC, ETH, and XRP. The common chart indicated Chainlink was posting moderate gains on a few of the pairs, and the post explained that the token was beginning to separate from the rest of the cryptocurrency market.

When the market is mixed, the strength of the relative may be important. While big-cap stocks can be less volatile, a token with better performance can gain more attention from traders who are looking to rotate stocks. For LINK, it looks like a situation for a temporary price structure change instead of a market-wide breakout.

Meanwhile, according to the analyst chart, there is no confirmation of that. However, traders will need to see the token’s volume increase to push up its price to over $10 to say that LINK is in an aggressive bull market upward trend.

Currently, the first few levels that need protecting are $9.72. A clean break below the latter form of support could return the $9.60 and $9.50 levels into play.

But LINK hasn’t broken apart yet. Price has now not strayed far enough from the upper band to put the recovery setup in jeopardy. The next test will probably be around $10 if buyers push through at $9.95. That level could determine the success or failure of this breakout or whether it is just another short bounce.

Momentum Cools After Latest Push

According to technical data, the MACD reading indicates that Chainlink’s momentum is slowing down. The MACD line hovered around 0.018, while the signal line hovered around 0.028. The histogram also shifted slightly downwards toward -0.010.

That does not imply that the sellers have completely taken control. It just means that the latest surge has come to a halt after LINK encountered resistance. If the MACD turns above the signal line again, it would provide a more solid confirmation for buyers in the short term.

The same goes for volume. Behind the current move, the TradingView chart does not indicate a large volume increase, which would require more momentum to look good.

LINK is in a constructive but incomplete configuration for now. Support is being defended, relative strength is improving, and price is nearing the resistance level. The subsequent step will be whether Chainlink can rally above $9.95 and maintain the price above $10 or whether sellers push the price down towards $9.72.