Chainlink price embarked on upward actions after the latest plummet had the token exploring monthly lows. That gains emerged after LINK rebounded from a trend-line and horizontal support floor at $13.5. A close beneath the 23.6% FIB resistance might see the crypto retesting the $14.18 level before triggering a possible breakout. Chainlink traded at $14.49 at this publication, surging 2.67% over the previous 24 hours.
Chainlink 4hr Chart
As the support barrier at $11.7 served as a massive buying level for more than one year, LINK rebounded from February lows to form bullish trend-line support. However, the recovery was short-lived as the resistance at $18 shunned upward movements. That welcomed a downtrend regime, and bulls finally defended the $13 mark.
For now, Chainlink needs a decisive break past $14 plus massive volumes for a continued uptrend to retest the 200 Exponential Moving Average.
Buyers maintaining their determination, LINK’s rally may secure a lucrative close beyond the 23.6% level. Besides the climbing wedge breakout threat, such a move would see the range at $14 – $15 a barrier for the token. However, failing to flip the 23.6% hurdle can mean an immediate 414.1 retest before bulls re-try to overcome the 50 Exponential Moving Average.
Reasoning
The Relative Strength index witnessed swift recoveries over the past five days. As the indicator secured ground beyond equilibrium, buyers ensured a superior edge. Meanwhile, the support range at 55 – 57 remains critical for the buyer to defend to avoid midline retest.
The Chaikin Money Flow appeared with feeble readings on the 4hr timeframe. The oscillator struggled to overcome the zero-line while marking a bearish divergence as the price surged over the past two days.
Final Thought
The price level at $14.5 remained crucial in gauging the immediate growth forecast for LINK. A close beneath this zone may meet support at the $41.4 barrier. Meanwhile, a closing past the 23.6% zone may translate to delayed reversals on the charts.
However, global market sentiments are vital for Chainlink’s directional bias. That is essential to ascertain profitable moves and complement technical factors.
