Link’s Battle With $8.4 While Atom Is Fighting With $7.5 Resistance: Technical Outlook Explained

• Link has been trapped in a consolidation phase for over a year, experiencing challenges in breaking through its upper resistance while finding vital support at the lower extreme.
• Atom recently broke free from a downward parallel channel, but it now contends with resistance from its former upper boundary, setting the stage for potential shifts in its trading pattern.

Link:

• At the daily time frame, Link is trading in a consolidation phase. The upper extreme of this phase is $9.47, and the lower extreme is around $5. It has been more than a year since Link has been trading in this range, and it is still struggling to break out of it. Link is facing extreme resistance at the upper end, leading to multiple downturns from that point. On the other hand, the lower extreme is providing significant support, helping Link’s price stay above $5. Recently, a rally was observed in Link, but it’s now fading due to selling pressure around its $8.4 resistance level. Link has tested this resistance four times in the past couple of months and is still struggling to overcome it.
• By considering the recent pivotal points on the Link chart, we find strong support, which is crucial for any potential upside rally in the future. The 50-day and 200-day daily EMAs are providing support for Link, and a crossover of the 50-day and 200-day EMA is a strong indicator of potential upward movement.
• Link is currently forming higher lows, but it has not yet created a new higher high. If Link manages to achieve a new high above $8.4, it will confirm its bullish structure. Additionally, the RSI of Link is also exhibiting higher highs and higher lows, hinting at a possible bullish trend in the near future.

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ATOM:

• Atom was previously trading within a downward parallel channel but recently broke out of this channel. As mentioned in a previous article about Atom, it encountered resistance at $7.46 and subsequently dropped. Currently, Atom is facing resistance from the upper boundary of the former parallel channel, which had previously acted as a barrier. This is a critical support level, and if Atom breaches it, it could potentially return to the parallel channel, resulting in further price declines.
• Given Atom’s bearish structure of lower highs and lower lows, it is essential for Atom to surpass its recent high and establish support above that level for an upward rally. The range between $7.16 and $7.5 is a significant resistance zone for Atom as it incorporates two major hurdles: resistance from the 50-day EMA and resistance from the horizontal line. Moreover, this is where a recent lower high is formed. To shift the bearish structure to a bullish one, Atom must surpass $7.5 and maintain support at this level.
• While Atom is forming lower highs and lower lows, the RSI is showing higher lows and higher highs, indicating a potential bullish divergence in Atom’s future and the possibility of a price rally. Currently, Atom has support at two levels: $6.3 and $5.6.

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Conclusion:

In conclusion, both Link and Atom are facing critical junctures in their respective trading patterns. Link has been stuck in a consolidation phase for over a year, struggling to overcome its upper resistance while finding essential support at the lower extreme. A potential bullish scenario awaits Link if it manages to establish a new higher high above $8.4, supported by the RSI’s trend towards higher highs and higher lows.

On the other hand, Atom recently broke free from a downward parallel channel, but it now grapples with resistance from its previous upper boundary. The path to a bullish trend for Atom lies in surpassing its recent high and establishing solid support around the $7.5 range, potentially catalyzed by a developing bullish divergence in the RSI.

These analyses underscore the importance of key support and resistance levels for both assets. Whether it’s Link’s struggle to break out or Atom’s battle to establish a bullish structure, closely monitoring these levels and key indicators will be crucial for traders and investors in making informed decisions in the evolving crypto market.

Charts from TradingView

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