This summary text is fully AI-generated and may therefore contain errors or be incomplete.
Chainlink (LINK) has experienced a significant rally, surging over 10% in just two days and reaching a new multi-month high at $13.32. However, there are indications that the current rally may be losing steam. The daily Relative Strength Index (RSI) is showing a bearish divergence, suggesting a possible pullback in the near future. Despite this, dips in the price of Chainlink may still be attractive to investors. After breaking above the $8.00 resistance level and closing above the 50-day simple moving average, LINK saw a strong bullish move. It struggled to surpass the $11.65 and $11.80 resistance levels, leading to some range-bound trading and a slight decline towards $10.50. However, the bulls quickly regained control and initiated a fresh rally above the $11.65 resistance. On the daily chart, LINK broke above a rising channel with resistance at $12.30, further fueling the upward momentum. Currently, the price is consolidating above the $12.80 zone. If it fails to break above the recent high, there is a possibility of a pullback. The first level of support is at $12.65, followed by $12.00 and $11.65. A break below $11.65 could lead to a further decline towards the $10.55 low or even the 50-day simple moving average at $8.85. On the other hand, if LINK ignores the bearish divergence, it could continue to surge. Immediate resistance is seen near the channel at $13.30, with a key resistance level at $13.80. Breaking above this level could potentially lead to another 10% rally and a test of $15.00. In conclusion, while there are some bearish signs in the price of Chainlink, the overall trend remains bullish. Investors may find buying opportunities during any potential pullbacks in the near term.