- Chainlink price shows signs of recovery from its recent decline after dropping from the $8.28 level.
- A climb above the three Exponential Moving Averages will validate LINK’s bullish thesis, flipping the resistance at $7.41 into support.
- Invalidation of Chainlink’s bullish thesis will occur if LINK price closes below the lower trendline at $6.90.
Chainlink (LINK) price is in a short-term uptrend, the asset is close to a key resistance level at $7.41. Although LINK has flipped this hurdle into a support floor previously, investors are awaiting a climb above key resistance to confirm the continuation of the uptrend.
LINK has gathered steam on crypto Twitter since the DeFi scaling announcement, where Chainlink proposes tokenization of real-world assets on a global scale.
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Chainlink prepares for continuation of its uptrend
Chainlink price rallied nearly 50% between December 31 and February 20, 2023. LINK is currently battling resistance at $7.41, since the consolidation that started on February 24. During its consolidation phase, Chainlink price nosedived closer to support at $7.14.
The setup in the Chainlink 4H price chart forecasts a 10% upswing, to the bullish target at $8.28. A 10% rally in LINK could push the asset to its target at $8.28.
LINK/USDT Perpetual Contract chart
As seen in the chart above, there are three key resistance levels in the LINK price chart, at $7.41, $7.52 and $7.93. Chainlink price target is the $8.28 level. The Relative Strength Index (RSI), a momentum indicator, climbed to 41.66. As RSI stays above the oversold region and continues its climb towards the neutral level at 50, it signals the underlying strength of Chainlink’s recovery.