Chainlink (LINK) Holding Key Support, Bulls Aim Fresh Test of $25

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Chainlink (LINK) fell below $ 22.00 but stayed above $ 20.00 while Bitcoin and Ethereum struggled. The price is rising now and is likely to rise towards $ 24.00 and $ 25.00.

  • Chainlink token price started a downward correction from the high of $ 25.89 against the US dollar.
  • The price is well above the $ 20.00 level and the simple moving average of 100 (4 hours).
  • A key upside channel is forming on the 4 hour chart of the LINK / USD pair (data source from Kraken) with support near USD 20.50.
  • The price is rising and it seems like it will soon hit the USD 24.00 and USD 25.00 resistance levels again.

Chainlink (LINK) is gaining momentum

Recently Chainlink (LINK) started a downward revision from the high of $ 25.89 against the US dollar, similar to Bitcoin and Ethereum. There was a bearish pause below the USD 22.50 and USD 22.00 support levels.

The bears pushed the price below the 50% fib retracement level of the uptrend from the low of $ 17.20 to the high of $ 25.89. However, the bulls were active above the support zone of USD 20.00 and the simple moving average of 100 (4 hours).

Source: LINKUSD on TradingView.com

The price tested the 61.8% fib retracement level of the move up from the low of $ 17.20 to the high of $ 25.89. A key rising channel is also forming on the 4-hour chart of the LINK / USD pair with support near USD 20.50.

LINK is currently rising from channel support and trading above $ 22.00. It has even passed the $ 23.00 level and it appears the bulls are aiming for a new test of the $ 25.00 level. Further gains could open the doors for a move towards $ 26.50.

Fresh drop?

If chainlink’s price does not rise above the USD 24.00 level, there could be another drop. Initial support on the downside is near the USD 22.50 level.

Further losses below the $ 22.50 level could potentially move the price towards channel support. A break in channel support could jeopardize the $ 20.00 support in the short term.

Technical indicators

4 Hour MACD – The LINK / USD MACD is gaining momentum in the bullish zone.

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

Major support levels – $ 22.50, $ 21.20, and $ 20.60.

Main Resistance Levels – $ 24.00, $ 25.00, and $ 26.50.