• Chainlink has fallen out of its green ascending trend line.
  • A break lower has not happened as the 200-day Simple Moving Average is supporting price action.
  • Expect a squeeze against the green ascending trend line below and a pop of 5% in the coming days.

Chainlink (LINK) has had a choppy ride higher of late with the favorable tailwind in cryptocurrencies helping the mood and stamina. LINK has had more worries, however, in its run-up to $28.50. On August 18, LINK fell out of character by breaking the monthly R1 resistance level and the green ascending trend line. Price action broke below $26 and looked heavy. Buyers stepped in and supported the price with a bounce off the August 1 level around $24.56.

Chainlink’s pop will be a quick grab and snatch before sellers try to break the trend again

As the rally kicked back into gear after August 18, the R1 monthly resistance level showed it was turned into support on August 20 with a perfect bounce off the level at $26.53. Sellers tried to retake control the next day, and LINK even traded below the green ascending trend line for most of the day on August 22. Again the monthly R1 resistance showed its importance by supporting price action. Buyers stepped in and pushed the price again up toward the green ascending trend line.

LINK/USD daily chart
LINK/USD daily chart

Currently, the 200-day Simple Moving Average (SMA) is forming support for the price action LINK is showing today. As the lows are getting higher for a third consecutive day, expect buyers to push price action against the green ascending trend line. A break higher could cause a pop and hit $30.21. That level has been tested already twice, but no real close above as of yet. That level also aligns with the R2 monthly resistance, making it a double cap on price action. 

Should sentiment sour or the rally fade to the downside, expect a break of the monthly R1 resistance level and the next support to be found around $24.56.


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


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

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.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

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.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

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.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

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.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

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.

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