As the overall market rebounds from the negative effects of the East Asian crisis, altcoins are staging a comeback. One such coin experiencing a resurgence is Chainlink (LINK). Its price movement indicates the possibility of a significant upward trend, signaling the start of a potential bullish run following another bounce back.
For the third time, the $13 support level is proving crucial for Chainlink’s potential bullish turnaround, acting as a safety net. This hints at a stronger rebound in the making. Can this turnaround push Chainlink’s price beyond $20?
LINK Price Analysis: Struggles and Recovery
The LINK price movement appears to be caught in a sideways trend on the daily chart, facing challenges to maintain bullish momentum. Repeatedly testing the crucial support level at $13, the chart hints at a potential bearish signal with the looming threat of a death cross, as indicated by the downward trend of the 50-day Exponential Moving Average (EMA).
Source: Tradingview
Despite a significant 40% dip to the $13 level, breaking below the 200-day EMA, Chainlink finds renewed bullish momentum, leading to an 18% surge over the past five days.
The recovery rally showcases a V-shaped reversal pattern, reclaiming the psychological milestone of $15. Currently, LINK is trading at $15.475, marking a 2.49% intraday increase and suggesting a resurgence in bullish sentiment.
Technical Indicators
EMA: Both the 200-day and 50-day EMAs suggest a potential death cross, signaling bearish sentiment. However, if the recovery rally manages to push the price above the 50-day EMA, it could mitigate this risk and potentially reignite the uptrend.
Chainlink Price Forecast: Buying Opportunity Amid Recovery
As the market stages a recovery, the LINK price surge presents an enticing opportunity to capitalize on the dip. Should the current positive momentum persist, Chainlink could potentially surpass the $20 threshold. Moreover, with optimism in the air, there’s a possibility for the uptrend to extend its reach towards the $30 mark.
However, it’s essential to consider the flip side of the coin. A reversal in momentum around the $16 level could trigger a downturn, potentially leading to a retracement back to $13. A more significant dip below the $13 support level could spell trouble for Chainlink, signaling a potential 30% decline to $8.50.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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