Chainlink Retraces in a Price Surge as Bears Threaten to Short

The price of Chainlink (LINK) is in the zone of uptrend after the price rose above the moving averages.

LINK continued its uptrend to the high of $28.70. Buyers could not continue the bullish momentum above the recent high as the market reached an overbought region. 

As a result, Chainlink eased and found support above the low at $24 or the 21-day moving average line. Bullish momentum has resumed above $24 support. If the current resistance is broken, Chainlink will rise to the previous high of $34.50. On the other hand, if the bears break below $24 support, the market will fall to a low of $19. At press time, Chainlink is trading at $25.68. 

Chainlink indicator reading

The altcoin is at level 56 of the Relative Strength Index for period 14. The altcoin is in the bullish trend zone despite the earlier retracement. The altcoin is facing rejection. The price of the cryptocurrency is above the moving averages today, indicating a possible upward movement. Chainlink is below the 80% area of the daily stochastic. The bearish momentum is volatile. 

Technical indicators:  

Major Resistance Levels - $55 and $60

Major Support Levels - $20 and $15

What is the next move for Chainlink?

LINK/USD has resumed its bullish momentum. The only obstacle is resistance at $28. The uptrend will resume once the recent high is broken. In the meantime, the uptrend from January 11 has a candle body that tested the 61.8% Fibonacci retracement level. The retracement suggests that LINK will rise to the Fibonacci extension level of 1.618 or the high of $34.54.  

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.