Charted: Chainlink (LINK) Remains In Strong Uptrend, Why It Could Test $25

Chainlink (LINK) rallied after it broke the $18.00 and $20.00 levels, while bitcoin and Ethereum remained in a range. The price is correcting gains, but dips could be limited below $21.50.

  • Chainlink token price is gaining strength and it already broke the key $20.00 level against the US dollar.
  • The price is correcting lower from $23.76 and trading well above the 100 simple moving average (4-hours).
  • There is a key bullish trend line forming with support near $21.55 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
  • The price is likely to resume its upward move above the $22.50 and $23.00 levels.

Chainlink (LINK) Rally Takes Breather

In the past few days, there was a strong increase in chainlink (LINK), and it outperformed bitcoin and Ethereum. The price broke many important hurdles near $18.00 and $20.00 to start the recent surge.

The upward move gained pace above $20.00 and there was also a close above the 100 simple moving average (4-hours). The price rallied above $22.00 and traded to a near yearly high at $23.76. Recently, the price started a downside correction below $23.00.

The price even broke the 23.6% Fib retracement level of the recent rally from the $19.41 swing low to $23.76 high. However, the price is finding a strong support near $21.50.

Chainlink (LINK)

Source: LINKUSD on TradingView.com

There is also a key bullish trend line forming with support near $21.55 on the 4-hours chart of the LINK/USD pair. The trend line is close to the 50% Fib retracement level of the recent rally from the $19.41 swing low to $23.76 high.

A downside break below the trend line support might spark a larger decline below $21.00. The next major support is near the $20.00 level (the recent breakout zone).

Fresh Increase?

If chainlink’s price stays above the $21.50 zone and the trend line area, it could start a fresh increase. An initial resistance on the upside is near the $23.00 level.

A clear break above the $23.00 level could open the doors for more upsides above the $23.50 zone. In the stated case, the price could surge above the $25.00 level.

Technical Indicators

4-hours MACD – The MACD for LINK/USD is losing momentum in the bullish zone.

4-hours 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.

Major Resistance Levels – $23.00, $23.50 and $25.00.

Publication date: 
01/18/2021 - 10:12
Author: 
Disclaimer

The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.