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.
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.
