Friday, January 28, 2022
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By Brian Bollinger
Published 41 mins ago Updated 41 mins ago

After a significant correction phase, the Chainlink token managed to obtain strong support from the $17 mark. The token price started recovering where it is currently facing a crucial resistance of $23.5. With the increasing bullish momentum, the pair has reasonable possibilities to breach this overhead resistance and continue its rally.

Chainlink Key technical points:

  • The LINK price flips the 20-day dynamic resistance into a possible support
  • The daily RSI line charging towards the overbought zone 
  • The 24-hour trading volume in the Chainlink token is $1.09 Billion, indicating a 29.96% gain.

Chainlink Price Analysis: LINK Token Challenges The $23.5 Resistance For Bullish BreakoutSource-Tradingview

The retracement phase in the Chainlink token dropped the price to the strong support of $17. The pair was discounted by $51% while looking for sufficient demand pressure from the bottom support. The token price spent more than a week hovering above this level, displaying several lower price rejection candles.

On December 23rd, the token indicated a long bullish green candle, initiating a bullish reversal in the price. The current price of the token is $23.58, with an intraday gain of 2.66%

The LINK token is still trading below the trend defining 100 and 200 EMA, indicating a bearish trend in the price. However, the recent bullish reversal has recently crossed above the strong resistance of 20 EMA into a possible support level.

The daily Relative Strength Index (61) shows a striking recovery from the oversold zone. Moreover, the line is moving above the 14-EMA and has recently reclaimed the middle-neutral level(50).

LINK/USD 4-hour time frame chart

Chainlink Price Analysis: LINK Token Challenges The $23.5 Resistance For Bullish BreakoutSource- Tradingview

The bullish reversal in the LINK token has formed a cup and handle pattern in this lower time frame chart. The price is currently at the doorstep of this pattern neckline, i.e., $23.5, preparing for a bullish breakout. So far, the token has surged 37.5% from the bottom support level.

The Moving average convergence divergence indicator shows a bullish crossover among the MACD and signal lines, indicating the increasing bullish momentum.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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