After a considerable correction phase, Chainlink (LINK) secured reliable support at $17. The digital token launched a recovery and now encounters a critical resistance at $23.5. As the bullish momentum increases, the asset has the potential to crack this hurdle before continuing its upward movements.
LINK Vital Technical Points
- Chainlink has its price flipping the 20-day resistance into a potential support floor.
- The daily Relative Strength Index charges towards the overbought territory.
- Chainlink’s 24Hr trading volume is $1.09 Billion showing a 29.9% increase.
The correction price in the Chainlink market dragged LINK price lower to massive support at $17. The pair suffered a 51% discount and attempted to gather the needed demand momentum from the base footing. Meanwhile, the digital coin had its price wavering beyond this mark for over a week, flashing multiple lower price rejection candlesticks.
LINK displayed a long bullish candle on 23 December, kick-starting a bullish reversal for Chainlink price. Currently, the token’s price stands at $23.59, with a 2.66% intraday surge.
However, the alt still trades under trend-determinant 100- and 200-EMAs, suggesting a bearish attitude for the price. The latest bullish reversal crossed beyond the massive resistance of 20-EMA recently. The coin contemplates a move to authorize this mark as a support area.
The daily RSI (61) indicates a lucrative recovery trend from the oversold region. Furthermore, the line moved beyond the 14-EMA before reclaiming the neutral zone (50) recently.
LINK/USD 4Hr Chart
The upward reversals by LINK have created a cup-handle formation in the 4hr timeframe. For now, the price stands at the pattern’s neckline at $23.5, contemplating a bullish breakout.
LINK has gained 37.6% from the lower support floor. Meanwhile, the MACD indicates a bullish cross among the signal lines and Moving Average Convergence Divergence, confirming the surging momentum by bulls.
The global crypto market shows recovery signals for now. Bitcoin seems to stabilize past the $51K mark, hovering around $51,835 at this publication. Keeping the $50 hurdle away can mean bullishness in the alt market. That can support LINK overcome its obstacle for upside price exploration.