Chainlink (LINK) is attempting a steady increase from $10.00. The price is showing positive signs but it must clear $14.20 to start a full strength rally.
After a downside extension, Chainlink found support near the $10.00 zone. A low was formed at $10.103 and the price recently started a recovery wave. There was a move above the $10.50 and $11.20 resistance levels.
LINK outperformed Bitcoin and was able to clear the $12.50 resistance. It is now approaching the 23.6% Fib retracement level of the downward move from the $27.12 swing high to the $10.10 low.
Chainlink price daily chart | Source: LINK/USD on TradingView.com
LINK price is now showing many bullish signs above the $13.00 level but it is still below the 50-day simple moving average (blue). In the last two days, there was a fresh increase and the price is now facing a couple of key hurdles near the $14.00 and $14.20 levels.
There is also a key bearish trend line forming with resistance at $14.00 on the daily chart. A close above the trend line resistance and the 50-day simple moving average (blue) could initiate a strong increase.
The next resistance is $15.50. If the bulls manage a daily close above the $15.50 level, the price could see a reversal. In the stated case, LINK could rise and drift toward the $18.50 level (a multi-touch zone). It is close to the 50% Fib retracement level of the downward move from the $27.12 swing high to the $10.10 low.
The main resistance is now forming near the $20.60 level. If the bulls clear the $20.60 hurdle, it could open the doors for a pump toward the $23.10 resistance zone. The next key resistance is near the $25.00 level. Any more gains might send LINK price toward the $27.20 level.
Another Rejection In LINK?
If Chainlink fails near $14.00 or $14.20 and the 50-day simple moving average (blue), there could be a downside correction. Immediate support is near the $13.00 zone.
The next major support is at $12.20, below which LINK price might slide and test $11.80 (a multi-touch zone). Any more losses might call for a dip toward the $10.00 support zone in the coming days.
Overall, Chainlink’s LINK price is gaining pace above the $13.00 resistance zone. However, the bulls need to overcome $14.00 and the 50-day simple moving average (blue) to push the price further higher in the near term.
