Charted: Chainlink (LINK) Surges 25%, Why It Could Face Resistance Near $16

Chainlink (LINK) is up 25% and it broke many hurdles near $14.00, similar to bitcoin and ethereum. The price is now approaching a major resistance near the $16.00 level.

  • Chainlink token price is gaining bullish momentum above $14.00 against the US dollar.
  • The price is now trading above the $15.00 level and the 100 simple moving average (4-hours).
  • There was a break above a major bearish trend line with resistance at $12.30 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
  • The price is likely to test the $16.00 level, where the bears are likely to take a strong stand.

Chainlink (LINK) Rally is Reaching Crucial Juncture

In the past few sessions, there was a strong increase in bitcoin, Ethereum, bitcoin cash, chainlink (LINK), and other major altcoins. LINK price formed a strong support base above $11.00 and $12.00 to start the current increase.

There was a clear break above a major bearish trend line with resistance at $12.30 on the 4-hours chart of the LINK/USD pair. The pair broke the $13.50 resistance to move into a positive zone. There was also a break above the 76.4% Fib retracement level of the key decline from the $14.56 swing high to $8.71 swing low.

The pair is now gaining pace above the $14.00 level and the 100 simple moving average (4-hours). It is also trading above the $14.56 swing high.

Chainlink (LINK)

Source: LINKUSD on TradingView.com

The next major resistance on the upside is near the $16.00 level. It represents a major barrier and it is also close to the 1.236 Fib extension level of the key decline from the $14.56 swing high to $8.71 swing low. Any more gains could lead the price towards the $16.50 and $17.20 levels.

Downsides Supported?

If there is a bearish reaction, chainlink’s price is likely to find buyers near the $15.00 level. The first major support on the downside is near the $14.50 zone (the last swing high and a support zone).

Any more losses could lead the price towards the $14.00 support zone (a multi-touch region), where the bulls are likely to take a strong stand.

Technical Indicators

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

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

Major Support Levels – $15.00, $14.50 and $14.00.

Major Resistance Levels – $15.80, $16.00 and $17.20.



from NewsBTC https://www.newsbtc.com/analysis/link/chainlink-link-surges-25-resistance-near-16/

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