Chainlink hits a brick wall on the approach to $12.6
|- Chainlink (LINK) regained ground above $10, but further growth may be limited.
- The price has to stay above the daily EMA200 to retain long-term positive bias.
Chainlink (LINK) bottomed at $8 on December 23 following the massive sell-off on the cryptocurrency market. The coin managed to recover to above the critical barrier of $10.5 and tested $13.22 on Sunday, December 27. By the time of writing, LINK retreated to $12.30; however, it is still 10% high on a day-to-day basis
The recovery helped LINK to regain 9th position in the global cryptocurrency market rating. The coin's current market capitalization is registered at $4.8 billion; an average daily trading volume settled at $2.2 billion.
LINK is in good shape as long as it stays above $10.5
From the technical point of view, LINK is supported by the upward-looking daily EMA200 at $10.5. A sustainable move above this area after the sell-off improved the technical picture and allowed for an extended recovery. However, the further upside may be limited by $13. This resistance reinforced by the daily EMA50 stopped the bulls on Sunday and pushed the price back inside the range.
LINK, daily chart
A sustainable move above this area will open up the way towards $15 and $16.4 (November 24 recovery high).
Meanwhile, according to In/Out of the Money Around Price (IOMAP) data, the price faces a brock wall on the approach to $12.6. About 14,500 addresses purchased over 78 million LINK tokens from $12.4 to $12.6. If this area is cleared, the bullish momentum will gain traction as there are no significant barriers until $14.
LINK, In/Out of the Money Around Price (IOMAP)
On the other hand, the way to the South seems to be a path of least resistance now. Minor support comes on approach to $12; however, if it gives way, the above-mentioned $10.5 will come into focus.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.