Chainlink is Stuck in a Range but Risks another Decline

Chainlink (LINK) is in an upward correction as the price breaks above the moving averages. In the uptrend, the bulls broke the moving average of the blue line, but failed to break the moving average of the red line.

Had the buyers been successful, Chainlink would have regained the $17 and $19 highs. Today, the upside was staved off at the moving average of the 50-day line, but is above the moving average of the 21-day line. 

This means that the price should continue to move between the moving averages for a few more days. The altcoin will develop a trend when the moving average lines are broken. For example, if the price breaks the red moving average line, the price of LINK will rise above the $19 high. Similarly, in the opposite direction, if the price falls below the blue moving average line.

Chainlink indicator reading

The cryptocurrency is at level 54 of the Relative Strength Index for the period 14. The altcoin is in an uptrend and is capable of further upward movement. The price of the cryptocurrency is between the moving averages, which indicates a possible movement within a certain range. The altcoin is below the 80% range of the daily stochastic. The market is in a bearish momentum.

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, but is encountering resistance at the $15 high. The cryptocurrency will likely continue to rise to the previous highs. Meanwhile, the March 17 uptrend has a candle body testing the 61.8% Fibonacci retracement level. The retracement suggests that LINK will rise to the Fibonacci extension level of 1.618 or $16.06.

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.