Chainlink Looks Prepared For Another Rally Over $13

Chainlink looks prepared for another rally above $13 as the price started a sharp rise from the $10.00 support zone and traded as high as $13.64 but it then corrected lower and I snow preparing for another rally higher over $13.00. in our latest chainlink coin news, we are taking a closer look at the price analysis.

Chainlink’s token price started a major upward move after it cleared the $11.50 resistance against the US dollar. The price then traded above $13.64 and settled above the 100 simple moving average. There’s a key contracting triangle forming with resistance at $12.70 on the 4-hour charts of the LINK/USD pair. The current price action indicated the chances of a fresh rally above $12.70 and $13.00. Over the past week, LINK formed a strong support base of $9.80 and $10.00 with the price starting a strong upward movement and clearing the $11.00 resistance zone in order to move into a positive zone.

The bulls gained pace above the $11.50 resistance and the 100 simple moving average with a break at $13.00 resistance and the price trading to a new monthly high of $13.64. There was also a sharp downside correction below the $13.00 and the $12.50 levels. The price traded below the 23.6% fib retracement level from the upward movement at the $9.75 swing low to the $13.64 high. There was also a spike below the $12.00 level but the bulls defended the $11.800 support. The 100 simple moving average and the 50% fib retracement level from the upward move at $9.75 swing low to $13.64 high are acting as strong support.

It seems that the key contracting triangle forming on the 4-hour charts of the pair is set at $12.70 so if the pair breaks the triangle resistance it will start a fresh increase above the $13.00 resistance level.  the next major resistance is close to the $13.50 and $13.65 level so further gains could lead the price towards the $14.00 resistance zone. The initial support for chainlink’s price is close to the triangle lower trend line at $12.00 so if there’s a downside break below the triangle support so the price could revisit the $11.50 support. The 100 simple moving average and the $11.50 support are important. A clear close below $11.50 could push the price towards $10.50 support.

The 4-hours MACD for the pair is into the bullish zone while the 4-hour RSI still well above the 50 levels.