The price of Chainlink’s LINK token is climbing above the $20.00 mark, showing a gain of over 5%. There’s speculation it could continue rising and target the $25.00 resistance level.
Chainlink’s price is looking good above $20.00 against the US dollar. It’s trading above $20.50 and the 100 simple moving average on the 4-hour chart. A significant development was breaking a bearish trend line near $20.00. According to data from Kraken, if the price surpasses the $22.00 resistance area, it might rally even more.
Chainlink Bulls Push Price Higher
In recent sessions, Chainlink bulls successfully surpassed key obstacles around $18.50. This followed a period where the LINK price stabilized above $16.75, sparking a fresh upward trend.
A significant breakthrough occurred as the bearish trend line near $20.00 was breached on the 4-hour LINK/USD chart. The bulls then drove the pair above $22.00, resulting in a new multi-month high at $22.85 before a downward correction ensued.
Despite a dip below $22.00, the price remains above the $20.50 level and the 100 simple moving average (4 hours), showcasing a 5% increase. This performance outpaces Bitcoin and Ethereum. If bullish momentum persists, the price could continue its ascent. Immediate resistance is anticipated around $21.80.
Source: LINKUSD on TradingView.com
The $22.00 zone marks a significant hurdle. Surpassing it could signal a sustained uptrend toward $23.00 and $24.20 levels. Further resistance lies near $24.80, potentially leading to a test of $25.00.
Potential Downside Scenarios for Chainlink
If Chainlink’s price fails to surpass the $22.00 resistance level, a downside correction could ensue. Initial support is anticipated near the $21.00 mark.
The next significant support level lies around $20.00 or the 50% Fibonacci retracement level, calculated from the upward movement between the $16.75 swing low and the $22.85 high. If these levels are breached, the price might test $18.80, with further losses potentially leading to a downturn toward $17.65 in the near future.
Technical Indicators
- On the 4-hour chart, the MACD for LINK/USD is showing bullish momentum. Additionally, the RSI (Relative Strength Index) is above the 50 level, indicating positive sentiment.
- Major support levels are identified at $21.00 and $20.00, while major resistance levels stand at $22.00 and $23.00.
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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