Chainlink (LINK) has surged above key resistance levels at $13.50 and $15.00, indicating a potential setup for a new rally if it successfully surpasses the $16.20 and $16.50 levels.
Following a robust upward movement, Chainlink experienced a corrective downturn from the $16.60 zone, leading to a dip below the $15.50 and $15.00 levels. The price even briefly dropped below the $13.50 support before witnessing a bullish response from buyers.
Chainlink (LINK) Price Analysis: Renewed Upside Momentum
Recovery and Key Levels: Following a low near the $12.89 mark, Chainlink (LINK) has initiated a fresh uptrend, mirroring the movements of Bitcoin and Ethereum. The price demonstrated a steady climb above crucial resistance points at $13.50 and $14.20. Notably, it comfortably settled above the $15.00 level and the 50-day simple moving average (blue).
Chainlink price daily chart. Source: TradingView.com
Technical Indicators and Fib Levels: Currently, LINK is trading above the 76.4% Fibonacci retracement level of the downward trajectory from the $16.58 swing high to the $12.89 low. This suggests signs of further upward movement, particularly above the $16.00 level.
Formation and Resistance: On the daily chart, the price is forming a contracting triangle, with resistance positioned around $16.20. A decisive break above this triangle resistance could pave the way for a robust rally. Immediate resistance is found near the $16.60 level.
Potential Upside Targets: In the event of a clear breakout, the first significant resistance may align with the 1.618 Fibonacci extension level, reaching $18.86. Further gains could lead LINK toward the crucial barrier at $20.00, and sustained bullish momentum might even propel it to explore levels around $22.00. The ongoing positive trends indicate the potential for further upside movements if the bulls maintain control.
Chainlink (LINK) Price Outlook: Potential Support and Cautionary Levels
While Chainlink (LINK) eyes a fresh surge above $16.50, there exists the possibility of facing resistance at this level. The initial support is positioned at $15.25, and a failure to secure a breakthrough might lead to testing the first major support at $14.75 or the lower trend line of the triangle. A breach below this could trigger a slide towards the $13.75 support zone.
The subsequent major support lies at $13.50, coinciding with the 50-day simple moving average (blue). A downside breach beneath $13.50 could propel Chainlink toward the $12.00 zone, and further losses might prompt a move toward the critical $8.50 pivot level.
Chainlink’s LINK price currently maintains a bullish stance above the $15.00 support and the 50-day simple moving average (blue). The outlook suggests a potential attempt at a fresh rally in the coming days, targeting levels around $18.85 and $20.00. However, caution is advised, and close monitoring of support and resistance levels is crucial to assess potential market movements.
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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