Chainlink (LINK) has recently been the focus of traders after a strong rally pushed its value towards the coveted $20 mark. However, this level has proven to be a significant resistance point, as indicated by the recent price action. LINK has been unable to secure a stable position above this threshold, retreating to a current price of $18.46. This retreat reflects a moment of rebalancing in the market, with potential short-term profit opportunities for bearish traders.
On the technical front, LINK’s breakout from a prolonged consolidation saw the price soar by 115%, piercing through the $16 resistance with confidence. However, the momentum seems to have waned upon reaching $20, leading to the current retracement.
Despite this pullback, LINK is finding support near the 50-day Exponential Moving Average (EMA), suggesting that not all bullish sentiment has dissipated. Additionally, the occurrence of a golden cross between the 50-day and 200-day EMAs traditionally signals a bullish market trend.
The cryptocurrency’s attempt to climb has been met with challenges, as indicated by the Fibonacci retracement levels. The 0.236
Current technical levels to watch include support at $15.20 and $14.50, while resistance levels to overcome for further bullish momentum are at $20.70 and $25.90. The Moving Average Convergence Divergence (MACD) indicator shows the signal line has crossed above the MACD line, although both remain below the zero level – a sign that LINK’s price needs to breach this threshold for sustained upward movement. Meanwhile, the Relative Strength Index (RSI) has slipped below 50, hinting at a weakening of the recent bullish cycle.
Chainlink (LINK) Tumbles at Critical Juncture, Eyeing $20 Resistance
Chainlink’s (LINK) recent price action presents a critical moment for the cryptocurrency, as it oscillates around the $18.46 mark on the 4-hour chart. LINK’s journey has been met with tough resistance at $20, an anticipated profit-taking region that was once a breachable target after ascending from the support level of $16.26. The current market situation places LINK at a crossroads, trading slightly above the Moving Average (MA) support at $18.22.
The cryptocurrency’s attempt to climb has been met with challenges, as indicated by the Fibonacci retracement levels. The 0.236 Fib level at $19.20, just below the psychological $20 barrier, has become an area of interest for traders. Should LINK manage to pivot past this resistance, the next significant hurdle lies at the 0.5 Fib level of $19.75, with the peak potential resistance at $20.74 marked by the 1 Fib level.
On the downside, if LINK fails to maintain its position above the MA, it could face a descent toward the 1 Fib extension level at $16.726, which aligns with the previous support. The subtle interplay between the MA line and the current price suggests that traders are watching for either a decisive upward break or a confirmation of a downtrend.
