Chainlink (LINK) is up 15% and it broke many hurdles near $16.20, similar to bitcoin and ethereum. The price is testing a major barrier at $18.00, above which it could test $20.00.
- Chainlink token price is showing a lot of positive signs above the $16.20 level against the US dollar.
- The price is now testing the $18.00 resistance and it is well above the 100 simple moving average (4-hours).
- There was a break above a key bearish trend line with resistance at $16.20 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
- The price is likely to accelerate higher if there is a clear break above the $18.00 level.
Chainlink (LINK) Rally Could Gather Momentum
In the past few sessions, there was a steady increase in bitcoin, Ethereum, bitcoin cash, chainlink (LINK), and other major altcoins. LINK price broke a major hurdle near $16.20 to start the current upward move.
There was also a break above a key bearish trend line with resistance at $16.20 on the 4-hours chart of the LINK/USD pair. The pair gained pace above $17.00 and it even spiked above the $18.00 resistance level.
It seems like the price is again struggling to gain pace above the $18.00 level. A high is formed near $18.75 and the price is currently correcting lower. It is trading below $18.00. An initial support on the downside is near the $17.25 level.
Source: LINKUSD on TradingView.com
The 23.6% Fib retracement level of the recent increase from the $12.48 swing low to $18,76 high is also near the $17.25 level. If there are more downsides, the price might continue to move down towards $16.20.
On the upside, the $18.00 zone is a key breakout area. The next major resistance for LINK is near the $18.50 level. A close above the $18.00 and $18.50 levels could open the doors for a larger increase in the near term. The next stop could be $20.00, followed by $20.40.
Downsides Supported?
If there is a fresh decline, chainlink’s price is likely to find buyers near the $16.20 level. The next major support on the downside is near the $15.60 zone (a multi-touch zone).
The 50% Fib retracement level of the recent increase from the $12.48 swing low to $18,76 high is also near the $15.60 level to provide support.
Technical Indicators
4-hours MACD – The MACD for LINK/USD is gaining momentum in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for LINK/USD is currently close to the 70 level.
Major Support Levels – $17.25, $16.20 and $15.60.
Major Resistance Levels – $18.00, $18.50 and $20.00.