LINK shows early signs of a fresh rally as it is trading nicely above the $14.00 support zone against the US dollar. It seems that the bulls will push the asset higher if the price clears the $16.00 resistance level so let’s find out more in today’s Chainlink coin news.
The LINK token price is trading close to the main $14.00 support zone against the US dollar and the bulls are facing a huge resistance close to the $16.00 level and the 100 simple moving average. There’s also a crucial contracting triangle that is forming with the resistance near the $16.00 level on the LINK/USD charts. LINK shows early signs of the fresh rally if it manages to clear the $16.00 resistance zone.
After the huge downside correction, Chainlink found support above the $12.50 level against the US dollar and then formed a support base above $14.00 by consolidating the losses in a broad range below the 100 simple moving average. The recent low was close to $13.39 before the price went on higher and then surpassed the $14.50 resistance level. LINK broke above the 50% fib retracement level from the downward movement of $16.38 to $13.39 low. It is now facing a strong resistance close to the $15.65 level and the 100 simple moving average.
The fib retracement level of 75% of the downward move is also acting up as resistance. There’s a crucial contracting triangle that is forming with a resistance close to $16.00 on the 4-hour charts for the pair. a successful break above the 100 sma and the trend line at $16.00 will open the doors for a fresh rally again. The next key resistance is close to the $16.95 level above which LINK could rise steadily to the $17.50 and the $18.00 levels in the near term.
On the downside, Chainlink’s price will be able to find strong bids close to the triangle support at $14.00 and the next major support will be close to the $13.00 level. A downside break below the $13.00 support level will push the price to the breakdown support of $12.00. More losses could lead the price towards the $10.00 handle. The 4-hour MACD for the pair is gaining pace in the bullish zone. The RSI for LINK/USD is now moving nicely above the 50 level.
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