Chainlink Makes Positive Moves but Struggles below $29 Resistance

Chainlink's (LINK) price is trying to overcome resistance at $27. Buyers were rebuffed at the same price level on August 11, but the price of LINK fell to a low of $24. The current upward movement is a result of the previous unsuccessful attempt.

Today, buyers rallied back and broke through the resistance level. Sellers will provide strong resistance as the market reaches the overbought region. If the buyers succeed in breaking the resistance level, Chainlink will rise to $35. However, if LINK /USD turns from the recent high, the market will fall to a low of $22. With the market in overbought territory, downside momentum could break below $22 support, which would signal the resumption of the downtrend.

Chainlink indicator reading

The Chainlink price is still at the 70 level of the Relative Strength index period 14, and the price movement is likely to be marginal as the cryptocurrency has no room to move up. Similarly, the cryptocurrency is above the 80% area of the daily stochastic. We expect sellers to emerge in the overbought region. The moving averages are up and suggest an uptrend.

Technical indicators: 

Major Resistance Levels - $55 and $60

Major Support Levels - $20 and $15

What is the next move for Chainlink?

Chainlink is likely to continue an uptrend. The main obstacle is breaking above resistance at $29. Meanwhile, the uptrend from August 11 has a candlestick body testing the 50% Fibonacci retracement level. The retracement suggests that LINK will rise to the 2.0 Fibonacci extension or the $32.53 level.

Disclaimer. This analysis and forecast are the personal opinions of the author are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by Coin Idol. Readers should do their own research before investing funds.