Charted: Chainlink (LINK) Close Above $13.1 Could Trigger Sharp Rise
Chainlink (LINK) seems to be following a nice uptrend above $12.00. There are high chances of more gains once the bulls manage to clear the $13.10 and $13.50 resistance levels.
- Chainlink token price is trading in a positive zone above the $12.00 support against the US dollar.
- The price is facing hurdles near $13.10, but it is well above the 100 simple moving average (4-hours).
- There was a spike above yesterday’s highlighted contracting triangle with resistance near $12.80 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
- The price is likely to start another rally if there is a clear break above $13.10 and $13.50.
Chainlink (LINK) Sighting More Upsides
Yesterday, we discussed how chainlink (LINK) gained pace above the $11.00 resistance zone to move into a positive zone. The price eve settled above the $12.00 resistance and the 100 simple moving average (4-hours).
However, the price is still struggling to clear the $13.10 resistance zone. A high is formed near $13.08 and the price is currently correcting lower. It seems like there was a spike above yesterday’s highlighted contracting triangle with resistance near $12.80 on the 4-hours chart of the LINK/USD pair.
The pair is now trading near the broken triangle zone at $12.85. It is also testing the 23.6% Fib retracement level of the recent move from the $12.04 swing low to $13.08 high.
Source: LINKUSD on TradingView.com
The first major support is near the $12.55 level. It is close to the 50% Fib retracement level of the recent move from the $12.04 swing low to $13.08 high. The next major support is near the triangle lower trend line at $12.25.
On the upside, the price is facing a major hurdle near $13.10. A clear break and close above $13.10 could open the doors for more gains above the $13.50 resistance level. The next major resistance is near $13.80, above which the price could even clear $14.00.
Downsides Limited?
An initial support for chainlink’s price is near the $12.55 and $12.50 levels. The main support is forming near the $12.25 and $12.20 levels.
If there is a downside break below the $12.20 support zone, there is a risk of a bearish move towards the $11.50 support level and the 100 simple moving average (4-hours).
Technical Indicators
4-hours MACD – The MACD for LINK/USD is slowly gaining momentum in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for LINK/USD is now well above the 50 level.
Major Support Levels – $12.55, $12.25 and $12.20.
Major Resistance Levels – $13.10, $13.50 and $14.00.
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow