Chainlink Rebounds and Breaks Resistance at $27, May Resume Uptrend

Chainlink's (LINK) price has broken above the moving averages for the first time as the altcoin approaches the $28 high. Buyers have been unable to rise above the moving averages since the downward impulse on September 21.

Rather, the cryptocurrency is in a downward correction between the $22 and $27 price levels. Chainlink will continue to rise if the bulls regain support at $28. For example, if the bullish momentum continues, the cryptocurrency will reach a new high between $31 and $35. On the other hand, if the bullish momentum is pushed back, LINK/USD will fall and continue its downward correction.

Chainlink indicator reading

Chainlink is at level 55 of the Relative Strength Index of period 14. The cryptocurrency has reached the zone of uptrend and is capable of further upward movement. The price bars of the cryptocurrency are above the moving averages, which indicates further upward movement. LINK is above the 80% area of the daily stochastic. The market is in a bullish momentum and approaching the overbought zone.

Technical indicators:  

Major Resistance Levels - $55 and $60

Major Support Levels - $20 and $15

What is the next move for Chainlink?

The LINK/USD price has broken through the moving averages and has risen to a high of $27. The upward move will continue if the current resistance is broken. Meanwhile, the uptrend from October 14 has shown a candlestick testing 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 $29.

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.