- Chainlink price retests March 5 lows as part of healthy price action.
- LINK could rise nearly 15% to $20.70 if the $18.12 support level holds.
- A test of $16.00 would signify a lower low, invalidating the bullish thesis.
Chainlink (LINK) price dropped nearly 30% since it peaked at $22.86 on March 11. The steep pullback made it so that the altcoin was able to collect sell-side liquidity residing below the $16.86 support level.
Also Read: Chainlink price gears up for nearly 10% gains as LINK sees whale accumulation
Chainlink price bounce could send LINK to $20
After a dip below $16.86, Chainlink price recovery rally has set the altcoin atop the $18.12 support. That it continues to consolidate within an ascending parallel channel is bullish in itself.
If bulls defend this buyer congestion level, which had prevented LINK price from extended falls before, Chainlink price could push north, shattering resistance from the midline of the ascending parallel channel before tagging the $20.70 blockade.This would denote a conservative 15% climb.
A decisive candlestick close above the aforementioned roadblock would encourage more buying, likely sending LINK price to its $22.86 peak. Such a move would constitute a climb of about 26% above current levels.
The Relative Strength Index (RSI) is attempting a recovery above the 50 midline. If this momentum indicator confirms the deviation with a shift to the upside, traders would be looking for longs.
LINK/USDT 1-day chart
However, a break and close below $18.12 support on the daily time frame would encourage more sell orders, with the ensuing seller momentum propelling Chainlink price back to the $16.86 support level where the bulls could identify another buying opportunity.
In a dire case where the $16.86 level fails to hold as support, Chainlink price could roll over, with a candlestick close below $16.00 invalidating the bullish thesis.
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