- Chainlink rebounded massively over the weekend from the support formed last week at $11.
- LINK has eyes on $16, especially if on-chain metrics continue to improve.
Chainlink has rallied 122% from September’s lows at $7.2. The spike above $16 last week saw bears swing into action, leading to a correction towards $11. LINK’s bulls appear to have regained most control over the price and are ready for another liftoff above $16.
Chainlink eyes $16 as pressure behind the token builds
LINK is trading slightly above $14 after recovering from last week’s support near $11. The token is also within the confines of an ascending parallel channel, suggesting that the uptrend is still intact.
Meanwhile, bulls have eyes on $16 but await the ultimate liftoff to $20.A break above the channel’s middle boundary would cement buyers’ position in the market and perhaps create enough volumes for a bullish price action towards $16 and $20, respectively.
A golden cross formed after the 50 Simple Moving Average on the daily chart crossed above the 100 SMA doubles down on the bullish building momentum. Besides, the Relative Strength Index hints at a growing buyers’ grip.
LINK/USD daily chart
IntoTheBlock’s IOMAP model reveals that Chainlink has a clear path to $16 as long as on-chain levels remain unchanged or improve further. However, some subtle resistance is expected between $14.4 and $14.9. Here, roughly 14,500 addresses had previously bought approximately 3.5 million LINK. A break above this range might boost LINK above $16.
-637423020807182971.png)
Chainlink IOMAP chart
On the downside, immense buyer congestion shows that correction from the current price levels is doubtful. Nearly 12,000 addresses had previously bought around 21 million LINK in the massive support range running from $12.7 to $13.1.
LINK/USD weekly chart
The weekly chart highlights a possibility where the TD Sequential indicator may present a sell signal in the coming sessions or a few days. The call will manifest in a green nine candlestick. The bearish outlook could see enough selling pressure, forcing Chainlink to fall in one to two four daily candlesticks. In other words, the above bullish narrative would be invalidated.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
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.