After a strong rally at the start of the month, the Chainlink price has been under a bit of retracement facing dome downward volatility. At press time, the Chainlink price is trading just under the $7.50 level taking support above the long-term macro trend.
Conversely, the ratio of on-chain transaction volume indicates that retail investors have been consistently striving to capitalize on favorable market conditions. When the Chainlink price experiences an uptick, they tend to act quickly by moving their coins.
With Chainlink’s price currently at $7.56, it has seen a nearly 2% increase over the past 24 hours, recovering from a 5.3% dip. The coin has found support at the $7.40 level, preventing it from sliding to $7.00, where the 50-day Exponential Moving Average (EMA) is positioned. Maintaining this support is crucial for LINK’s recovery towards $8.01.
As LINK stands just 13% away from its year-to-date high of $8.58, it requires a series of positive candlesticks to achieve this upward momentum. The Relative Strength Index (RSI) lends support to this idea, rebounding from the neutral line at 50.0, indicating the presence of bullish momentum.
This momentum has the potential to propel the price toward $8.01, bringing it closer to the next significant resistance level at $8.38. However, if LINK fails to hold the support line, it could negate the bullish scenario, leading LINK to test the support line at $6.91.