Market Overview for Chainlink/Tether (LINKUSDT) on 2026-01-07

Summary
• Price tested key support at $13.48 before rebounding toward $13.55.
• RSI indicates potential overbought conditions near $13.90.
• Volatility expanded during the overnight session, with Bollinger Band widening.
• Volume increased during the break from $13.48 to $14.06, suggesting directional conviction.
• A bullish engulfing pattern emerged between $13.48 and $14.06.

Chainlink/Tether (LINKUSDT) opened at $13.78 on 2026-01-06 at 12:00 ET, reached a high of $14.06, dipped to a low of $13.29, and closed at $13.41 on 2026-01-07 at 12:00 ET. Total volume was 2,586,709.88 units, with a notional turnover of $34,380,255.16 over 24 hours.

Structure & Formations

Price action over the 24-hour period revealed a key support zone around $13.48, which held during a sharp midday decline. A bullish engulfing pattern formed as price rebounded from this level, with a close above the prior bearish candle. A potential resistance cluster exists between $13.72 and $13.85, where price previously stalled.

Moving Averages

On the 5-minute chart, the 20-period and 50-period moving averages were closely aligned, suggesting a consolidating bias during the late afternoon and evening hours. The daily chart showed the 50-period MA above the 100 and 200-period MAs, signaling a moderate long-term bullish trend.

MACD & RSI

The MACD turned positive during the rebound from $13.48, confirming renewed buying pressure. RSI peaked at 68 near $14.06, hinting at potential overbought conditions. A minor divergence appeared between RSI and price during the afternoon pullback, suggesting caution ahead of a potential reversal.

Bollinger Bands

Volatility increased sharply overnight as price moved from $13.48 to $14.06, with Bollinger Bands expanding significantly. During the afternoon, price remained within the upper and lower bands, with no clear breakout attempts. A contraction in the bands could precede a directional move toward either support or resistance.

Volume & Turnover

Volume spiked during the bullish reversal from $13.48 to $14.06, validating the strength of the bounce. Notional turnover mirrored this pattern, showing a peak of over $644,000 at the high of $14.06. Later in the day, volume decreased as price consolidated, suggesting a potential pause in momentum.

Fibonacci Retracements

On the 5-minute chart, the $13.55 level aligned with the 61.8% Fibonacci retracement of the $13.48–$14.06 move, providing a possible short-term target for a continuation of the rebound. The 38.2% level at $13.69 was briefly tested during consolidation, but failed to hold.

Market participants may watch the $13.72–$13.85 resistance range for signs of a retest or sustained momentum. A break below $13.48 could signal renewed bearishness, but the recent bullish engulfing pattern and strong volume suggest a test of higher levels may be possible. Traders should remain cautious as volatility and momentum indicators suggest a period of consolidation could follow.