The price of Chainlink had been in a period of consolidation over the past few sessions. However, the bulls were recently able to break above an important resistance level. Despite this recent bullish action, the daily chart showed a 6% depreciation and on the weekly chart, LINK had a 9% loss.

The technical outlook looked bleak with fading demand and low accumulation. Nevertheless, if LINK can remain above the $7 mark, another rebound may be possible. As Bitcoin displayed mild bullish sentiment after reclaiming the $28,000 mark, most altcoins exhibited similar behaviors.

At the time of writing, Chainlink was trading at $7.02, with its immediate resistance at $7.40. If the altcoin manages to surpass this resistance, it will encounter a tough price ceiling of $7.70, and reaching that level may revive the bulls.

Conversely, failing to stay above the $7 mark will pull Chainlink down to $6.80. If this happens, LINK may decline by up to 15%, nearing the $5.80 mark. The last session saw a decrease in the amount of LINK traded, and indicators suggested that buying strength was weakening.

(by anushsamal)