After initiating a buy in September, Chainlink increased significantly and formed an inverse “head and shoulder” pattern. This led to a massive surge near its two-year high with 170% gains in two months.
Link appeared extremely bullish from a short-term perspective following a huge breakout of a long tight range last month. However, it has managed to tap an 18-month high of $15 today but cooled off briefly due to a slight rejection.
The price dropped slightly and remained calm at around $14.6. The asset may enter a small consolidation phase around that price level before it resumes bullish. If that happens, the March 2022 high would be the next target to watch.
But considering the extremely overstretched price on the current daily chart, a potential selling might just be around the corner as it nears exhaustion. However, there’s more room for an increase in the weekly.
If volatility drops and Link pulls lower in the next few days, we should expect a retest at the monthly breakup levels. A deep pullback could bring the price to $9.5, where it broke out of range in October.
Having posted about 5% gains in the last 24 hours, it is currently spotted amongst the top gainers on the weekly timeframe with an $8.1 billion worth of market cap.
Link’s Key Levels To Watch
While Link is still on a buying spree, a surge above the daily high of $15 could push the price to $16 and $17 – where it started to break down last year.
Conversely, it is trading well above the $14 support level. If the price pulls below this support, the next level to consider as support lies at $13, followed by the monthly breakout level of $12.
Key Resistance Levels: $15, $16, $17
Key Support Levels: $14, $13, $12
- Spot Price: $14.67
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.