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 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.
Major Resistance Levels - $55 and $60
Major Support Levels - $20 and $15
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.