/Chainlink (LINK) is Showing Early Signs of Fresh Rally, But 100 SMA is the Key

Chainlink (LINK) is Showing Early Signs of Fresh Rally, But 100 SMA is the Key

Chainlink (LINK) is trading nicely above the $14.00 support zone against the US Dollar. It seems like the bulls are setting up for another rally if the price clears the $16.00 resistance.

  • Chainlink token price is trading above the main $14.00 support zone against the US dollar.
  • The bulls are facing a major resistance near the $16.00 level and 100 simple moving average (4-hours).
  • There is a crucial contracting triangle forming with resistance near $16.00 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
  • The pair is likely to start a fresh rally once it clears the $16.00 resistance zone.

Chainlink (LINK) Holding Uptrend Support

After a major downside correction, chainlink (LINK) found support above the $12.50 level against the US Dollar. LINK formed a decent support base above the $14.00 level and started consolidating losses in a broad range below the 100 simple moving average (4-hours).

The recent low was near $13.39 before the price started moving higher. It surpassed the $14.50 and $14.80 resistance levels. There was also a break above the 50% Fib retracement level of the downward move from the $16.38 high to $13.39 low.

LINK is currently facing a strong resistance near the $15.65 level and the 100 simple moving average (4-hours). The 76.4% Fib retracement level of the downward move from the $16.38 high to $13.39 low is also acting as a resistance.

Chainlink (LINK)Chainlink (LINK)

LINK price above $15.00. Source: TradingView.com

More importantly, there is a crucial contracting triangle forming with resistance near $16.00 on the 4-hours chart of the LINK/USD pair. A successful break above the 100 SMA and the trend line at $16.00 could open the doors for a fresh rally.

The next key resistance is near the $16.95 level, above which chainlink (LINK) might rise steadily towards the $17.50 and $18.00 levels in the near term.

Dips Likely to be Limited

On the downside, chainlink’s price is likely to find strong bids near the triangle support and $14.00. The next major support is near the $13.00 level.

A downside break below the $13.00 support level could push the price towards the breakdown support at $12.00. Any further losses may perhaps lead the price towards the $10.00 handle.

Technical Indicators

4-hours MACD – The MACD for LINK/USD is slowly gaining pace in the bullish zone.

4-hours RSI (Relative Strength Index) – The RSI for LINK/USD is now moving nicely above the 50 level.

Major Support Levels – $14.00, $13.00 and $12.00.

Major Resistance Levels – $15.65, $16.00 and $16.95.

Original Source