Chainlink (LINK) is holding the key $ 12.50 support level, similar to bitcoin at $ 18,500. The price is likely to start a strong increase above $ 13.50 as long as it is above $ 12.50.
- Chainlink token price is consolidating above the key $ 12.50 support against the US dollar.
- The price is now facing hurdles near $ 13.50 and the 100 simple moving average (4-hours).
- There is a key contracting triangle forming with resistance near $ 13.50 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
- The price is likely to break above $ 13.50 unless there is a clear break below $ 12.50.
Chainlink (LINK) Could Rally above $ 13.5
In the past few sessions, there were mostly range moves in bitcoin, Ethereum, ripple bitcoin cash, chainlink (LINK), and other major altcoins. LINK price started a short-term downside correction after it failed to stay above $ 14.00.
A high was formed near $ 14.25 before the price declined below $ 13.50 and $ 13.00. However, the bulls protected the main $ 12.50 support area. A low is formed near $ 12.50 and the price is currently rising. There was a break above the $ 13.00 level.
The price even spiked above the 50% Fib retracement level of the recent drop from the $ 14.25 swing high to $ 12.50 swing low. It is now facing hurdles near $ 13.50 and the 100 simple moving average (4-hours).
Source: LINKUSD on TradingView.com
There is also a key contracting triangle forming with resistance near $ 13.50 on the 4-hours chart of the LINK/USD pair. The triangle resistance coincides with the 61.8% Fib retracement level of the recent drop from the $ 14.25 swing high to $ 12.50 swing low.
A clear break above the $ 13.50 resistance zone might increase the chances of a sharp upward move above $ 14.00. The next key resistance is at $ 14.25, above which the price might rise towards $ 15.50 and $ 16.20.
Downsides Supported?
An initial support for chainlink’s price is near the $ 13.05 and $ 13.0 levels. The first major support is forming near the $ 12.80 level and the triangle lower trend line.
If there is a downside break and close below the triangle support zone, the price could revisit $ 12.50. Any more losses may possibly start a strong downward move below $ 12.00 and $ 11.80.
Technical Indicators
4-hours MACD – The MACD for LINK/USD is struggling to gain momentum in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for LINK/USD is currently close to the 50 level.
Major Support Levels – $ 13.00, $ 12.80 and $ 12.50.
Major Resistance Levels – $ 13.50, $ 13.80 and $ 15.00.
