Chainlink Approaches Major Supply Barrier

Chainlink seems to be reaching a supply threshold that might spark a price adjustment.

Chainlink’s positive momentum has significantly increased, and it presently leads the cryptocurrency market. Nonetheless, several signs show that LINK may see a minor reversal if it hits the $10 zone.

Since the start of trade on Friday, Chainlink has outpaced the top 10 cryptocurrencies by market value, gaining more than 6%.

LINK rose from an intraday low of $8.97 to an intraday high of $9.50 before retreating to $9.21 at press time. As upward pressure increases, the token has more space to rise. The formation of a descending triangle on Chainlink’s daily chart indicates that the stock might gain an additional 11% before its uptrend approaches exhaustion.

Since LINK broke the $7.30 resistance level on July 29, the Y-axis of this technical formation indicates a $10.60 price goal. Despite the general market for cryptocurrencies showing symptoms of weakening, Chainlink looks to have the technical ability to realise its upward potential.

Approximately 3,300 addresses have already bought between $9.82 and $10.12 worth of LINK. This central region of interest may oppose the upward price movement, as investors with negative equity may seek to break even on a portion of their holdings.

Although LINK may be able to reach double digits, Chainlink is facing a key point of resistance. Before the uptrend restarts, the probable bearish pattern might result in a one-to-four daily candlestick correction.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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