On August 26, Chainlink's (LINK) price surged to $12.55, stirring speculation about a potential breakout. However, the price faced resistance and fell back to $11.25, leading to a bearish technical outlook.
Despite attempts to rally, LINK's price encountered resistance at $12.55, suggesting that sustained growth remains uncertain. A symmetrical triangle pattern on the daily chart might lead to either a breakout or range-bound trading.
The Ichimoku Cloud tool indicates strong resistance above LINK's current price, implying difficulties in surpassing the $11 region in the short term.
Further analysis reveals that LINK is trading near its 20-day EMA, but below its 50-day EMA, indicating no clear breakout opportunity. Resistance is noted at around $12.33, where the 38.2% Fibonacci retracement level sits.
Given the weakened buying pressure, LINK may struggle to reach resistance levels in the short term, eyeing support around $10.71. However, an influx of buying activity could propel the price to $13.65.
