Chainlink’s LINK token has rebounded over 5% in the last 24 hours to trade above $14.50, after yesterday’s widespread cryptocurrency market crash. LINK remains in an upward price channel despite the recent volatility, presenting trading opportunities for both swing and trend traders according to research firm altFINS.
altFINS highlighted that LINK continues to trade in a Channel Up pattern, fluctuating between support around $14.50 and resistance around $17. Swing traders can look to enter long positions near the lower support level and take profits near the upper resistance level. A stop loss around $13.50 is recommended to mitigate downside risk if the pattern fails.
Meanwhile, trend traders may want to wait for a definitive breakout above the $17 resistance level before initiating new bullish positions in LINK. A breakout could lead to rapid price appreciation as the pattern runs its course. altFINS has set an alert at $17.25 to monitor for such a breakout.
Source: altFINS – Start using it today
The firm remains bullish on Chainlink’s long-term prospects due to its position as a leading decentralized oracle network. Chainlink stands to benefit from growing demand for real-world data and aggregation within blockchain systems and decentralized applications. For example, increased tokenization of real-world assets like US Treasury Bonds requires reliable price data – something Chainlink specializes in.
From a momentum perspective, the outlook is mixed at the moment. The MACD indicator shows bearish alignment with the MACD line below the signal line. However, the RSI is neutral at around 50. This indicates consolidative conditions for LINK in the near-term.
In terms of support and resistance, $14.50 marks the first level of expected support as a previous resistance flip. Below that the $11.80 area marks the next support zone. To the upside, $17.00 is initial resistance, followed by psychological resistance at $20.00.
Overall, Chainlink remains technically bullish after rebounding from yesterday’s broader crypto market bloodbath. Savvy LINK traders can look to trade around the boundaries of the Channel Up pattern or prepare for a potential breakout above resistance. Upside potential appears higher given altFINS long-term bullish outlook on Chainlink’s critical role across decentralized networks.
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