Chainlink price created the $5.53 to $9.66 range in May and June 2022, and since then the altcoin has been trading inside it. After a sweep of the $5.53 level on June 5, LINK triggered a 77% rally from $4.76. Although the Oracle token managed to flip the midpoint briefly, it failed to sustain its ascent.
Now, Chainlink price trades around the midpoint of the aforementioned range at $7.59. The Relative Strength Index (RSI) and the Awesome Oscillator (AO) have both flipped above their respective mean levels at 50 and zero, indicating a resurgence in bullish momentum.
A successful retest or a pullback would be in the bulls’ favor. A dip would be bought by sidelined buyers, hoping to ride the next Decentralized Finance (DeFi) wave.
Therefore, investors should keep a close eye on Chainlink price, which could trigger a nearly 30% ascent to retest the range high at $9.66. In an even more bullish case, LINK could tag $11.92 – which is a high timeframe barrier – and register gains of almost 60%.
Daily Price Chart for LINK/USDT, Source: TradingView.
Although the daily chart shows optimism, investors should be cautious about whether the Chainlink price will be rejected around the midpoint of the range between $5.53 and $9.66, at $7.59.
If LINK continues to decline without buyers stepping in, it would indicate a shift in investor sentiment. Additionally, the support level at $5.53 for Chainlink would become a resistance level, creating a lower low and invalidating the bullish argument. Such a development could lead to a retest of the volatile low at $4.76 on June 5th, representing a drop of approximately 35% from the current price level.
