Chainlink (LINK) is up 15% and has broken many hurdles near $ 16.20, similar to Bitcoin and Ethereum. The price is testing a large barrier at $ 18.00 above which it could test $ 20.00.
- Chainlink token price is showing many positive signs above the $ 16.20 level against the US dollar.
- The price is now testing the USD 18.00 resistance and is well above the simple moving average of 100 (4 hours).
- On the 4-hour chart of the LINK / USD pair (data source from Kraken) there was a break above a major bearish trendline with resistance at USD 16.20.
- Price is likely to accelerate if there is a significant break above the $ 18.00 level.
The Chainlink Rally (LINK) could gain momentum
There has been a steady surge in Bitcoin, Ethereum, Bitcoin Cash, Chainlink (LINK), and other major altcoins in recent sessions. LINK price has cleared a major hurdle near $ 16.20 to start the current uptrend.
There was also a break above a major bearish trendline with resistance at USD 16.20 on the 4-hour chart for the LINK / USD pair. The pair gained pace above $ 17.00 and even above the $ 18.00 resistance level.
It seems like the price is struggling again to grow past the $ 18.00 level. A high is being formed near $ 18.75 and the price is currently correcting lower. It trades under $ 18.00. Initial support on the downside is near the $ 17.25 level.
Source: LINKUSD on TradingView.com
The 23.6% fib retracement level of the recent surge from $ 12.48 to $ 18.76 is also close to the $ 17.25 level. If there are other downsides, the price could drop further towards $ 16.20.
On the downside, the $ 18.00 zone is a major breakout area. The next big resistance for LINK is near the $ 18.50 level. A close above the $ 18.00 and $ 18.50 levels could open the doors to a larger move in the short term. The next stop could be $ 20.00 followed by $ 20.40.
Disadvantages supported?
If it falls again, the price of chainlink should find buyers near the USD 16.20 level. The next big downside support is near the $ 15.60 zone (a multi-touch zone).
The 50% Fib retracement level of the recent move from $ 12.48 to $ 18.76 is also close to the $ 15.60 level to provide support.
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 close to the 70 level.
Major support levels – $ 17.25, $ 16.20, and $ 15.60.
Main Resistance Levels – $ 18.00, $ 18.50, and $ 20.00.
