New Delhi(CoinChapter.com): Chainlink (LINK) rallied over 10% in two days and climbed toward $13.25. The current rally is signaling exhaustion, but dips might remain attractive.
After a clear move above the $8.00 resistance and a close above the 50-day simple moving average (blue), LINK saw a massive rally. There were strong bullish moves above $8.80 and $10.00.
Later, Chainlink struggled to clear the $11.65 and $11.80 resistance levels. There were range moves and the price declined a few points toward $10.50. A low was formed at $10.55 before the bulls took over. A fresh rally started above the $11.65 resistance, unlike Bitcoin and Ethereum.
LINK rallied above a rising channel with resistance at $12.30 on the daily chart. It is up over 10% in two days and traded to a new multi-month high at $13.32.
It is now consolidating gains above the $12.80 zone. However, the current daily RSI is printing a bearish divergence. Therefore, there is a chance of a pullback in Chainlink if it stays below the recent high.
Initial support sits at $12.65 or the 23.6% Fib retracement level of the recent surge from the $10.55 swing low to the $13.32 high. The first major support is at $12.00, below which the bulls might take a stand near the $11.65 support (the recent breakout zone).
The 61.8% Fib retracement level of the recent surge from the $10.55 swing low to the $13.32 high is also near $11.65. A downside break below $11.65 might send Chainlink toward the $10.55 low. Any more losses might call for a move toward the 50-day simple moving average (blue) at $8.85.
Conversely, LINK might completely ignore the bearish divergence and continue to surge. Immediate resistance is near the channel at $13.30. The first key resistance is near $13.80, above which the price could rally another 10% and test $15.00.
Overall, Chainlink’s LINK price is showing a few bearish signs and might correct lower toward $12.00 or $11.65. Having said that, the larger trend is still bullish, and dips might be attractive to the bulls in the near term.
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