Chainlink Price Prediction: LINK can still surge another 5%

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

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.

Share: Cryptos feed

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.