Summary
• Price tested and retested a key resistance zone around $12.45 before retreating.
• RSI moved into overbought territory mid-session, followed by a pullback.
• Volume surged during the $12.37–$12.55 range, suggesting heightened interest.
• A large bullish engulfing pattern formed late morning, signaling potential reversal.
• Bollinger Bands expanded during the breakout attempt, indicating rising volatility.
Market Overview
Chainlink/Tether (LINKUSDT) opened at $12.38 on 2025-12-29 12:00 ET and traded as high as $12.61 before closing at $12.48 at 12:00 ET on 2025-12-30. The 24-hour volume reached 505,422.5 units, with notional turnover of approximately $6,381,726.14.
Structure & Trends
Price moved between key support at $12.37 and resistance at $12.55, forming a consolidation pattern.
A large bullish engulfing candle formed around 08:15–08:30 ET, signaling potential reversal from prior bearish momentum. The 5-minute 20-EMA and 50-EMA crossed into a bullish alignment by mid-morning, suggesting short-term upside bias.
Momentum & Volatility
The RSI moved into overbought territory above 70 during the 15:00–16:00 ET window, suggesting overextension and potential correction. Bollinger Bands expanded as price broke out of the $12.45 level, indicating rising volatility and investor interest. A bearish divergence emerged in the late afternoon as price rose but RSI declined, hinting at a possible pullback.
Volume & Confirmation
Volume spiked sharply during the $12.37–$12.55 range, confirming the importance of this price band. Turnover increased during the consolidation and breakout phases, aligning with price action. A divergence between price and turnover appeared during the final two hours, suggesting weakening conviction in the current trend.
Fibonacci Retracements
Fibonacci levels applied to the key swing from $12.28 to $12.61 showed price testing the 61.8% retracement at $12.51. A potential target for a counter-trend move could be the 38.2% retracement at $12.44, which may now serve as a near-term support.
Looking ahead,
appears to be positioning for a potential break of the $12.55 level, but increased divergence and overbought RSI readings suggest caution. A pullback to the $12.44–$12.48 range could offer short-term consolidation before further directional movement. Investors should watch for a confirmation candle above $12.55 or a rejection below $12.44 in the next 24 hours.
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