LINK Is Holding The Uptrend Support And Could Rally Again: Analysis

LINK is holding the uptrend support at the $23.79 level and rallied towards $24K similar to bitcoin and Ethereum’s price movements. The price is now trading near a major support zone at $20.00 with many chances of rallying higher so let’s read more in today’s Chainlink news.

Chainlink’s token price traded as high as $23.79 before being able to start a downside correction against the US dollar and the price even traded above the $20.00 level and the 100 simple moving average. There’s a connecting bearish trend line forming with the resistance near the $21.70 on the 4-hour charts of the pair with the price being able to extend losses to $18.20 before starting a new increase in the near-term.

After the clear break above $20.00, LINK continued its rally and surged above the $22.00 level while settling well above the 100 simple moving average. The coin traded to $23.79 before going on a new correction and there was a break below $22 and $21.20 support levels so breaking below the contracting triangle here with the support at $21.50 is highly likely as per the 4-hour chart of the pair. The bulls lost control and the price increase below the $20.50 level but the drop was limited and the price only got to $19.90. LINK is trading above the $20.00 support and it is staying above the 100 simple moving average.

The resistance for LINK is close to the $20.80 level and it is close to the 23.6% fib retracement level at the decline from $23.79 high to the $19.90 low. What’s more to it, there’s a connecting bearish trend line that is forming with the resistance close to the $21.70 on the charts with a trend line closing to the 50% fib retracement level at the decline from the $23.79 high to the $19.90 low. Breaking above this trend line could open the doors for a push above $25.00. LINK is holding the uptrend support but if the price fails to continue higher, it could correct lower. The first major support is close to the $20.00 level and the next major support is set at the $18.20 level where the bulls could take a stand.

The 4-hour MACD indicator for the pair is gaining momentum in the bearish zone while the 4-hour RSI for LINK/USD pair is close to the 50 level. The major support levels include $20.00 and $19.10 while the major resistance levels include $20.80 and $21.70.