Chainlink (LINK) rebounded after breaking the $ 18.00 and $ 20.00 levels while Bitcoin and Ethereum remained in one range. Price corrects gains, but the drops could be limited below $ 21.50.
- The price of Chainlink tokens is gaining strength and has already passed the key level of USD 20.00 against the US dollar.
- The price corrects lower from $ 23.76 and is trading well above the simple moving average of 100 (4 hours).
- A major bullish trendline is forming on the 4-hour chart of the LINK / USD pair (data source from Kraken) with support near USD 21.55.
- The price is likely to continue its uptrend above the $ 22.50 and $ 23.00 levels.
Chainlink (LINK) rally takes a breather
In the past few days there has been a sharp surge in Chainlink (LINK) and it outperformed Bitcoin and Ethereum. Price broke many key hurdles near $ 18.00 and $ 20.00 to usher in the recent surge.
The uptrend gained pace above $ 20.00 and there was also a close above the simple moving average of 100 (4 hours). The price rose above $ 22.00 and was trading at $ 23.76 on a near-yearly high. Recently the price began a downward correction below $ 23.00.
The price even broke the 23.6% fib retracement level of the recent rally from a low of $ 19.41 to a high of $ 23.76. However, the price finds strong support near $ 21.50.
Source: LINKUSD on TradingView.com
A major bullish trendline is also forming on the 4-hour chart of the LINK / USD pair with support near USD 21.55. The trendline is close to the 50% Fib retracement level of the recent rally from a low of $ 19.41 to a high of $ 23.76.
A downside break below trendline support could trigger a larger drop below $ 21.00. The next major support is near the USD 20.00 level (the most recent breakout zone).
If the price of chainlink stays above the USD 21.50 zone and trendline area, it could cause another spike. Initial resistance to the upside is near the $ 23.00 level.
A sharp break above the $ 23.00 level could open the doors for further upside moves above the $ 23.50 zone. In the specified case, the price could rise above the USD 25.00 level.
4-Hour MACD – The LINK / USD MACD 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.
Major Support Levels – $ 21.50, $ 21.20, and $ 20.00.
Main Resistance Levels – $ 23.00, $ 23.50, and $ 25.00.