Chainlink (LINK) rebounded after it broke the USD 18.00 and USD 20.00 levels, while bitcoin and Ethereum remained in range. The price corrects gains, but dips can be limited to below $ 21.50.
- The Chainlink token price is gaining momentum and it already broke the key USD 20.00 level against the US dollar.
- The price corrects lower from $ 23.76 and is trading well above the simple 100 (4-hour) moving average.
- A major bullish trendline is forming with support near USD 21.55 on the LINK / USD pair’s 4-hour chart (Kraken data source).
- The price is likely to resume its upward movement above the USD 22.50 and USD 23.00 levels.
Chainlink (LINK) Rally takes a breath
In recent days, there was a strong increase in chain link (LINK) and it performed better bitcoin and Ethereum. The price broke many major hurdles near USD 18.00 and USD 20.00 to start the recent rise.
The upward movement gained faster than USD 20.00 and there was also a close above the 100 easy moving average (4 hours). The price soared above USD 22.00 and traded towards a near annual high of USD 23.76. Recently, the price started a downward correction below USD 23.00.
The price even broke the 23.6% Fib retracement level of the recent rally from the swing low of $ 19.41 to $ 23.76 high. However, the price is finding a strong support near USD 21.50.
Source: LINKUSD on TradingView.com
A major bullish trendline is also forming with support near $ 21.55 on the 4-hour chart of the LINK / USD pair. The trend line is close to the 50% Fib retracement level of the recent rally from the swing low of $ 19.41 to $ 23.76 high.
A downward break below the trendline support could lead to a larger decline below USD 21.00. The next big support is near the USD 20.00 level (the recent breakout zone).
If the price of chainlink stays above the USD 21.50 zone and the trendline area, it could start another rise. An initial resistance on the upside is near USD 23.00.
A clear break above the USD 23.00 level could open the doors to more benefits above the USD 23.50 zone. In the case mentioned, the price could climb above the USD 25.00 level.
4-Hour MACD – The MACD for LINK / USD is losing momentum in the bullish zone.
4-Hour RSI (Relative Strength Index) – The RSI for LINK / USD is currently well above the 60 level.
Key Support Levels – USD 21.50, USD 21.20 and USD 20.00.
Major Resistance Levels – USD 23.00, USD 23.50 and USD 25.00.