- Chainlink price action targets the 100-day simple moving average at $30.
- LINK/USD pair RSI points to a bullish uptrend
- Sufficient buyer pressure is expected to drive the price by 40% and break above $45
Chainlink is on an upward trajectory on the daily chart and seems to be heading for the 100-day Simple moving average ($30). This is after the bulls were rejected at $26 and sunk to an intraday low of $22. The coin has already formed an ascending channel on the 4-hour chart. If the bulls sustain the trajectory, the LINK/USD pair could break above the 50% FIB retracement level ($28.29). This will spark buyer action, which could steer the price against the first significant resistance and target the 38.2% FIB retracement level of the upward channel from the 52-week low of $33 to a high of $34.73.
As you can see on the chart below, LINK is just recovering from a descending triangle. Selling pressure is highest around $21, and any possible break below this point would open doors for a bearish reversal to $16. The May 19th decline from $44 to $21 caused a bearish outlook that sliced through the first and second support and wiped over 50% of trader investments. The bulls are hoping that the coin is going to clear resistance at $25 and surge above the 200-day moving average. To prove this, measure the distance between the head and the pattern’s neckline. Add your result to the breakdown mid-point downwards.
At the time of writing, Chainlink (LINK) at 14th place by market capitalization with a 24-hour trading volume of $3B and a percentage gain of 28.54%.
The Relative Strength Index (RSI) is pointing above 30, which indicates a bullish trendline. However, the coin is still facing a major resistance at $25 and $26. A price level it’s been hovering around for the last few hours. The bulls might require support from the broader market to neutralize any forthcoming bearish outlook and rise to $45. If this happens, the bulls hope to retest the $53 all-time high.
Chainlink’s 4-hour candlesticks show no signs of momentum from either the bulls or the bears. Slight buying pressure might create a pullback and drive a 20%-40% surge. A sell-off could see more red candlesticks on the 4-hour chart and enter the second wave of a bearish trend.
The weekend decline saw the market invalidate any gains made by the 70% bullish rally at the beginning of the month. LINK’s price action had gained at least 20 points and rallied from a $29.80 low to a $53.00 all-time high.
Chainlink has been gaining momentum since the start of the year and this was even further boosted by the April announcement of the blockchain’s new whitepaper. The paper documented fresh applications and implementations of smart contracts. Blockchain proponents are more bullish than ever for new chains such as Chainlink, Cardano, and Polkadot, which seem to pose competition to giant chains such as Bitcoin and Ethereum.
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