Charted: Chainlink (LINK) Surges 25%, Why It Could Face Resistance Near $16

Aayush Jindal

1 year ago

2 mins read

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Chainlink (LINK) is up 25% and it broke many hurdles near $14.00, similar to bitcoin and ethereum. The price is now approaching a major resistance near the $16.00 level.

Chainlink token price is gaining bullish momentum above $14.00 against the US dollar.
The price is now trading above the $15.00 level and the 100 simple moving average (4-hours).
There was a break above a major bearish trend line with resistance at $12.30 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
The price is likely to test the $16.00 level, where the bears are likely to take a strong stand.

Chainlink (LINK) Rally is Reaching Crucial Juncture

In the past few sessions, there was a strong increase in bitcoin, Ethereum, bitcoin cash, chainlink (LINK), and other major altcoins. LINK price formed a strong support base above $11.00 and $12.00 to start the current increase.

There was a clear break above a major bearish trend line with resistance at $12.30 on the 4-hours chart of the LINK/USD pair. The pair broke the $13.50 resistance to move into a positive zone. There was also a break above the 76.4% Fib retracement level of the key decline from the $14.56 swing high to $8.71 swing low.

The pair is now gaining pace above the $14.00 level and the 100 simple moving average (4-hours). It is also trading above the $14.56 swing high.

Source: LINKUSD on TradingView.com

The next major resistance on the upside is near the $16.00 level. It represents a major barrier and it is also close to the 1.236 Fib extension level of the key decline from the $14.56 swing high to $8.71 swing low. Any more gains could lead the price towards the $16.50 and $17.20 levels.

Downsides Supported?

If there is a bearish reaction, chainlink’s price is likely to find buyers near the $15.00 level. The first major support on the downside is near the $14.50 zone (the last swing high and a support zone).

Any more losses could lead the price towards the $14.00 support zone (a multi-touch region), where the bulls are likely to take a strong stand.

Technical Indicators

4-hours MACD – The MACD for LINK/USD is now gaining momentum in the bullish zone.

4-hours RSI (Relative Strength Index) – The RSI for LINK/USD is currently well above the 50 level.

Major Support Levels – $15.00, $14.50 and $14.00.

Major Resistance Levels – $15.80, $16.00 and $17.20.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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