Thursday, April 18, 2024

Chainlink Technical Analysis: Breakout Signal Emerges, $20 Target in Sight.

The price of Chainlink (LINK) has experienced a significant decline of almost 30% since reaching its peak at $22.86 on March 11. The significant decline allowed the altcoin to gather sell-side liquidity below the $16.86 support level.

A potential price rebound may propel LINK to $20.

Following a decline below $16.86, the Chainlink price has experienced a strong recovery, pushing the altcoin above the $18.12 support level. The fact that it continues to consolidate within an ascending parallel channel indicates a positive outlook.

If the bulls successfully protect this level of buyer congestion, which has previously prevented LINK price from experiencing significant declines, Chainlink price may move upwards, breaking through resistance from the middle of the ascending parallel channel and reaching the $20.70 barrier. This would indicate a modest 15% increase.

If the candlestick can close decisively above the mentioned obstacle, it could potentially trigger more buying activity, potentially propelling the LINK price to reach its peak at $22.86. This would represent an increase of approximately 26% from current levels.

The Relative Strength Index (RSI) is currently making an effort to regain strength above the 50 midline. If this momentum indicator confirms the deviation with a shift to the upside, traders would consider looking for long positions.

If the price breaks and closes below the $18.12 support on the daily time frame, it could trigger more sell orders. This could lead to downward momentum in Chainlink’s price, potentially bringing it back to the $16.86 support level. At that point, the bulls might see it as another chance to buy.

If the $16.86 level fails to hold as support, there is a possibility that the Chainlink price could decline, with a candlestick close below $16.00 negating the bullish thesis.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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