Chainlink (LINK) Price Analysis: Bullish Momentum Builds but Correction Risks Remain

LINK is currently hovering around the $23.0 mark and is showing signs of bullishness on lower timeframes. The price entered a downtrend after facing rejection around the $27.0 mark in late August and has been gradually moving lower since then. However, we can see LINK has gained some momentum these past couple of days and is trying to shift the trend once again. Let’s take a quick look at the latest Chainlink price charts to see where the price could be headed in the coming days.

Key Takeaways

• LINK is showing short-term strength after bouncing from $22 support and breaking out of a falling wedge.
• Upside targets sit at $25 and $27, but sellers are expected to remain strong at higher levels.
• Despite the bullish trend, bearish divergence on the daily chart signals a possible correction ahead.

Analyzing the LINK Charts

If we look at the latest 1-hour charts for LINK, we can see that the price has found support at $22.0 and is now trying to move above the resistance at $23.8. This is a crucial area of resistance, and if the price manages to break above it, the momentum will likely continue, with the next level to watch being the $25.0 mark.

Switching to the 4-hour timeframe, the levels we are watching for LINK are the same as on the hourly chart. An interesting development on this timeframe is that the price has broken out of a falling wedge pattern, which could indicate that LINK will be bullish in the immediate short term, with a retest of the $27.0 resistance likely. With the broader market consolidating, this could be the next move for LINK in the coming days.

Zooming out on the 1-Day timeframe, the broader outlook still looks bullish as the price has not broken the uptrend. However, the main thing to watch on this timeframe right now is the bearish divergence forming on the RSI. The price is forming higher highs while the RSI is showing lower highs. This indicates that LINK is in overbought territory. Unless we get an invalidation signal for this bearish divergence, a correction in the coming weeks is still very likely.

Final Takeaway: What is Next for Chainlink (LINK)?

LINK looks strong on the lower timeframes right now, and a move to the upside appears likely in the immediate short term. However, despite the broader trend also being bullish, the bearish divergence is still playing out for LINK, and the broader market is also lacking momentum. At the moment, LINK could climb above the $25.0 mark in the short term, but bears will likely remain strong around the $27.0 level. A correction could follow once the price reaches between $25.0 and $27.0, which is why our LINK price prediction for September still leans bearish.