The Chainlink coin recently broke through a resistance trendline, resulting in a significant rally. However, the LINK price is now facing a strong supply barrier at the $12 level, hindering further upward movement. This suggests that a bearish pullback may be imminent.
The LINK price has dropped by 5% today, signaling the start of a correction. Despite attempts to breach the $12 resistance point, buyers have been consistently rejected, leading to a series of rejection candles. This indicates that a short-term correction is likely to occur.
Based on the Fibonacci retracement tool, potential support zones for the LINK price are identified at $10.5, $9.5, and $8.8. These levels could provide a foundation for a resurgence in bullish momentum.
When comparing the performance of Chainlink and Bitcoin over the past six months, Chainlink has shown stronger growth. While Bitcoin has experienced sideways movement, the LINK price recovery trend has been more assertive, making it an attractive option for momentum traders.
In conclusion, the Chainlink price is expected to experience a bearish pullback due to the supply barrier at $12. However, this correction could provide an opportunity for buyers to enter the market at lower prices. Traders should monitor the potential support zones for signs of a bullish resurgence.
