• 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

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)

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.

 

 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.

More Bitcoin News
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.

More Ripple News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.

More Ethereum News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP