bullish

Chainlink

<ul class="wp-block-list">
 <li>LINK struggles to breach $12.38 resistance, facing challenges in recovery.</li>
 <li>Global In/Out of Money indicator shows significant supply between $11.61 and $13.24.</li>
 <li>Technical indicators suggest weakening bullish momentum, complicating potential rallies.</li>
</ul>
<a href="https://thenewscrypto.com/?s=Chainlink" target="_blank" rel="noopener noreferrer nofollow">Chainlink</a> (<a href="https://thenewscrypto.com/?s=LINK" target="_blank" rel="noopener noreferrer nofollow">LINK</a>) finds itself at a critical juncture as it grapples with persistent resistance at the $12.38 level. Despite showing signs of recovery, the altcoin has yet to fully recoup losses from its late August correction, casting doubt on its potential for sustained growth beyond the $11.64 mark.
The Global In/Out of the Money (GIOM) indicator provides crucial insight into LINK’s current market dynamics. Approximately 106.89 million LINK tokens, valued at over $1.2 billion, were accumulated between $11.61 and $13.24.
This substantial supply zone presents a formidable challenge for Chainlink’s upward trajectory.
<figure class="wp-block-image size-large"><img decoding="async" width="1024" height="237" src="https://thenewscrypto.com/wp-content/uploads/2024/09/image-59-1024x237.png" alt="" class="wp-image-108562" srcset="https://thenewscrypto.com/wp-content/uploads/2024/09/image-59-1024x237.png 1024w, https://thenewscrypto.com/wp-content/uploads/2024/09/image-59-300x70.png 300w, https://thenewscrypto.com/wp-content/uploads/2024/09/image-59-768x178.png 768w, https://thenewscrypto.com/wp-content/uploads/2024/09/image-59.png 1536w" sizes="(max-width: 1024px) 100vw, 1024px">
 <figcaption class="wp-element-caption">
 Source:&nbsp;<a href="https://app.intotheblock.com/" target="_blank" rel="noopener noreferrer nofollow">IntoTheBlock</a>
 </figcaption>
</figure>
For LINK to overcome this hurdle, it must decisively breach the $12.94 resistance level and transform it into a support base. Such a move would pave the way for a push towards $13.24, potentially turning the aforementioned supply profitable.
However, achieving this feat requires sustained bullish sentiment, a factor currently lacking in the market.
<h2 class="wp-block-heading" id="h-chainlink-paints-concerning-picture">Chainlink paints concerning picture</h2>
Chainlink’s macro momentum paints a concerning picture for bulls. The Average Directional Index (ADX), a key indicator of trend strength, has dipped below the critical 25.0 threshold.
This decline signals a major weakening of LINK’s uptrend, potentially hampering its ability to generate the momentum necessary for breaching key resistance levels.
Despite these challenges, LINK has managed a price increase over the past 24 hours, currently trading at $11.60. The immediate focus now shifts to the local resistance at $11.64. A successful breach of this level could open the door for a test of the previously insurmountable $12.38 barrier.
However, current market indicators suggest that even if LINK reaches $12.38, sustaining gains above this level may prove challenging due to waning bullish momentum. The likelihood of a pullback increases as buying strength diminishes, potentially leading to a consolidation phase or retracement.

Chainlink Struggles To Breach $12.38, LINK Faces Challenges in Recovery

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