Chainlink is in a Brief Uptrend, Reaches an Overbought Region

Chainlink (LINK) has rallied above its current support level. The rebound has taken the altcoin into an overbought region at $22.

The altcoin has fallen and found support above the 21-day line SMA as it prepares to climb back up. If bullish momentum resumes and buyers keep LINK above $26, Chainlink will come out of the downward correction. At $26 support, bullish momentum will extend to the $30 and $34 highs. On the other hand, if the bullish momentum fails to break above the $26 high, the market could retrace to a rangebound move between the moving averages. Chainlink's uptrend continues, struggling with initial resistance at $22. 

Chainlink indicator reading

Chainlink has risen to level 51 on the Relative Strength Index for the 14 period. The RSI indicates that there is a balance between supply and demand. The price of the cryptocurrency is above the 21-day line SMA, but below the 50-day line SMA, indicating that the altcoin may resume its sideways movement. Chainlink is below the 80% area of the daily stochastics. Stochastic bands are sloping upwards, indicating a possible uptrend.

Technical indicators:  

Major Resistance Levels - $55 and $60

Major Support Levels - $20 and $15

What is the next move for Chainlink?

Chainlink is in an uptrend. The current uptrend has reached an overbought region of the market. Meanwhile, on December 23, the uptrend has seen a retracement candlestick testing the 61.8% Fibonacci retracement level. The retracement suggests that LINK will fall to the Fibonacci extension level of 1.618 or the high of $22.23. From the price action, it appears that the market has reached the Fibonacci level and completed a reversal.

Disclaimer. This analysis and forecast are the personal opinions of the author and 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.