Key Takeaways
- Chainlink retested crucial support at $12.00 and the 50-week simple moving average (blue).
- LINK price is holding gains above a key parabolic curve with support at $14.00 on the weekly chart.
- The price could gain bullish momentum if it clears the $17.40 resistance zone in the coming days.
NEW DELHI (CoinChapter.com) — Chainlink (LINK) is signaling a strong bullish reaction from $12.00. The bulls could aim for a fresh rally above the $20.00 resistance soon.
Chainlink Price Holds Key Support
In the past few weeks, Chainlink saw a downside correction from the $22.80 zone, like Bitcoin and Ethereum. There was a move below the $18.00 and $15.00 support levels. However, the bulls were active near the $12.00 support and the 50-week simple moving average (blue).
The price tested the 50-week simple moving average (blue) and traded as low as $11.96. LINK price is now recovering and showing positive signs above $14.00. More importantly, it holds gains above a key parabolic curve with support at $14.00 on the weekly chart.
There was a move above the 23.6% Fib retracement level of the downward move from the $22.83 swing high to the $11.96 low. The current price action is positive, and the last two weekly candles suggest bullish momentum.
LINK price is now trading near the $16.00 resistance. The first major resistance on the upside sits at $17.40. It represents a multi-touch zone and is close to the Fib retracement level of the downward move from the $22.83 swing high to the $11.96 low.
A clear move above the $17.40 resistance could open the doors for a pump toward the $20.00 resistance zone. The next key resistance is near the $21.50 level. If the bulls remain in action, LINK might rally and climb toward the $22.80 barrier. Any more gains might call for a move toward $25.00.
Another Slide In LINK?
If Chainlink fails near $17.00 or $17.40, there could be a bearish reaction. Immediate support is near the $14.50 level. The next major support is at $14.00 or the curve region, below which LINK price might slide and test the $12.00 support zone or the 50-week simple moving average (blue). Any more losses might call for a move toward the $8.20 pivot level.
Fundamentally, Chainlink continues to develop and deliver. Recently, they shared an adaption update about 10 integrations of 5 Chainlink services across 8 different chains.
Overall, Chainlink’s LINK price trades in a bullish zone above the $14.00 support and the 50-day simple moving average (blue). It could soon start a fresh surge above the $17.00 and $17.40 levels.
