Just when the altcoins appeared to be losing momentum, Chainlink [LINK] resumed a mild uptrend along with its peers. Following the recent correction in the market, several tokens along with Bitcoin were trapped in range-bound consolidation.
However, in a brief respite, Chainlink [LINK] posted 4.31% gains over the last 24-hours which drove its price to
$13.12. At the time of writing, the fifth-largest coin registered a market cap of $5.20 billion and a 24-hour trading volume of $1.492 billion.
Every upside, in recent times, has met with heightened sell pressure. What’s in store for the token in the coming days?
Chainlink [LINK] Daily Chart:
The placement of daily moving averages indicated an optimistic outlook for Chainlink in the near-term. The 50 DMA underwent a bullish crossover with the 100 DMA after nearly two months of hiatus. This was significant as it suggested a revival of a positive trend as the candles turned green for the second consecutive day after a major downside correction.
Despite the fall, the price candles settled above the moving averages, thus pointing a positive trend.
However, Fibonacci Retracement depicted several resistances that Chainlink needs to watch out for in the coming days. After a fall from the 20% retracement level slightly above $14.85, which now acted as its resistance level, the price dropped close to the 70% retracement level of $11.19, which was found to be firmly supporting the coin.
The MACD indicator, for one, underwent a bearish crossover and showed no signs of a reversal in the trend following the drop. The RSI, too, dipped into oversold territory depicting an intense sell-off, as investors rushed to offload after the price established a local high.
While it did bounce upward, the revival was not strong enough as it continued to hover below the 50 median line.
As mentioned above, the bulls need to flip the overhead resistance of $14.85 in order to push higher and climb to the recent hit high. If the token manages to surpass this, another crucial target point would be $16.42 as depicted by Fib.
In the meantime, the bears would try to drag Chainlink’s price to $11.19. A breach below this support would shift the advantage in favor of the bears which in turn could sink the price as low as $7.95.