- Chainlink’s LINK token has seen a notable recovery from its $12.65 support level, hinting at a potential bullish momentum.
- Currently, the price is holding above the $13.50 threshold and the 100-hourly simple moving average, which are critical support areas.
- There was a significant breakthrough above a long-standing bearish trend line that had a resistance near $13.60, indicating a shift in market sentiment.
Chainlink’s LINK is showing promising recovery signals, aiming to move past the $14.20 resistance level.
Chainlink’s Upward Momentum
Recently, Chainlink has staged an impressive rally from the $12.65 support zone. The bullish push saw LINK prices advancing past the $13.00 and $13.20 marks, showing a trend similar to Ethereum’s upward movement.
The price surge was supported by a break above the 50% Fibonacci retracement level, measured from a swing high of $14.82 to a low of $12.66. Moreover, this momentum was bolstered when the price breached a key bearish trend line on the hourly LINK/USD chart, with resistance pegged at $13.60.
Currently, Chainlink is trading comfortably above the $13.50 level, maintaining strong support at the 100-hourly simple moving average. Immediate resistance is observed near $14.05, aligning with the 61.8% Fibonacci retracement level of the prior downward move.
Potential Resistance Levels
Looking ahead, a significant resistance awaits near the $14.20 zone. Clearing this barrier could pave the way for a more sustained advance towards the $14.50 level. If LINK manages to maintain this upward trajectory, the next critical resistance will be around $14.80, potentially testing the $15.00 mark. A breakthrough beyond $15.00 might drive the price further towards the $15.50 resistance level in the upcoming sessions.
Assessing the Downside Risk
However, if Chainlink fails to overcome the $14.20 resistance barrier, there is a possibility of a downside correction. Initial support is positioned around $13.80.
Subsequent major support is at $13.65, coinciding with the 100-hourly simple moving average. Should the price dip further, the $13.50 level would be the next critical support. Extensive losses from this level could potentially push LINK down towards the $12.90 support zone in the near term.
Technical Indicators
Hourly MACD – The MACD for LINK/USD is currently gaining positive momentum in the bullish territory.
Hourly RSI (Relative Strength Index) – The RSI for LINK/USD is comfortably positioned above the 50 mark, indicating a bullish bias.
Major Support Levels – $13.80 and $13.50.
Major Resistance Levels – $14.20 and $14.50.
Conclusion
In conclusion, Chainlink is demonstrating robust bullish signs above the $13.50 level, with potential for further gains if it surpasses the $14.20 resistance. Investors should closely monitor the mentioned support levels to gauge any potential downside movements. As the cryptocurrency market remains volatile, keeping an eye on these key technical indicators will be crucial for making informed trading decisions.
