In percentage terms the LINK / USD pair has gained close to thirteen percent since the start of the new trading month and has recovered over thirty percent of its value from the worst levels of September.
The cryptocurrency has also turned over the short-term, with the recent rally helping to form an inverted head and shoulder pattern. The $1.93 level is currently the neckline of the inverted head, with the $2.40 level the overall upside objective.
Bulls are currently attempting to break above the September trading high, which would help to negate a potential double-top price pattern, which is located around the $2.06 level.
The lower time frames are also showing price divergence, which suggests that the LINK / USD pair could see a short-term pullback if buyers fail to breach the September monthly trading high. The price divergence extends towards the $1.77 level, which is also the September monthly price open.
Medium-term analysis shows major resistance around the $2.22 level, which may come into focus if the September 24th trading high is broken. A breakout above the could see the LINK / USD pair soaring in value.
The indicator on the four-hour time frame is currently overbought, while the daily time frame shows that the indicator and the indicator have considerable scope to advance before becoming overbought.
According to the latest sentiment data from TheTIE. , the short-term sentiment towards Chainlink is neutral, at 48.00 %, while the overall long-term sentiment towards the cryptocurrency is overwhelmingly , at 68.50%.
LINK / USD H4 Chart by TradingView
The four-hour time frame highlights that the LINK / USD pair has turned over the short-term, with its 200-period moving average converging with the 50-period moving average around the $1.75 level.
Key upside resistance above the $2.06 level is currently located at the $2.22 and $2.40 levels, with the $2.60 level the strongest form of medium-term resistance above.
The LINK / USD pair currently shows price divergence across the lower time frames, which extends down towards the $1.77 .
The cryptocurrency’s 50-day moving average is currently located around the $1.93 level, while the LINK / USD pair’s 200-day offers critical medium-term support, around the $1.55 level.
Chainlink is continuing its recent recovery, with the cryptocurrency turning over the short and medium-term and challenging its former monthly trading high.
A breach of the September trading high could see the LINK / USD pair rally towards at least the $2.22 level, while technical failure could prompt technical selling towards the $1.77 .