Analysis

Charted: Chainlink (LINK) Looks Ready For Another Leg Higher Over $13.5

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).

Chainlink (LINK)

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.

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Technical analysis – NewsBTC

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