LINK/USD is trading above a key trendline, and the weekly close might see highs of $35.
The price of Chainlink has risen 13% in the last 24 hours and 23% in the last week, as bulls target a new breakout over $20. The 14th most valuable cryptocurrency has a 24-hour trading volume of $1.2 billion and is currently changing hands near $19.10, thanks to strong buying fueled by a rebounding crypto market.
As the market as a whole attempt to break above a falling trend line that has been in place since May, LINK buyers may be able to close over $20 and target highs last touched on June 20.
The LINK/USD short-term outlook is so dependent on how the cryptocurrency and the rest of the market handle the present seller response.
Price study of chainlinks
Although the weekend began with hesitation, as evidenced by the lengthy tail on Friday’s candlestick, Chainlink’s inclusion on the Avalanche blockchain coincided with an upsurge in LINK price.
Over the weekend, the hesitation subsided, but it persisted in early Monday trades.
On the daily chart, LINK’s price is barely above the 50-day moving average ($19.05) after breaking above a negative trendline that has been limiting prices since late May.
This comes with a drop in selling pressure, which has aided bulls in breaking through the trendline to a high of $19.54 intraday. If the uptrend is confirmed, LINK/USD could look for new support near the horizontal resistance of $19.68, laying the groundwork for a new assault on prices above $20.
With the Relative Strength Index (RSI) moving up above the 50-mark, technical indicators confirm the immediate bullish view. The inverted RSI indicates that buyers are still optimistic about the market, which is backed up by the Moving Average Convergence Divergence (MACD). The MACD has created a bullish crossover and is rising above the signal line at the moment.
If bulls manage to break above $20, targets at $24.33 and $26.91, respectively, lie north of the 50 percent Fibonacci retracement level and the 61.8 percent Fibonacci retracement level. If bulls maintain their gains, weekly gains might reach $35.
On the downside, selling pressure on the daily close could compel buyers to protect gains around $18. If the present rally fails to gain traction, support levels of $16.79 and $13.42 are available.