- Chainlink is currently trading at around $ 22 with a market value of $ 8.9 billion. A new annual high was recorded just above $ 23, and the previous year’s $ 20 was broken earlier today. Several days of upward momentum continues. So will LINK go up?
Chainlink has gained a lot of momentum recently, making an incredible move over 70 percent from its previous low of $ 13 to its highest at $ 23. However, the price retreated in a very short time, helping the market to increase interest in serious buyers once again.
Will LINK go up?
Cryptopolitan analysts see several possible areas of support:
First, the $ 18 level, which previously acted as resistance for LINK / USD, will likely provide some support. This level is also coupled with the 50 percent Fibonacci retracement level, measured from the previous low at $ 12.25 to the current high at $ 23.17. Additionally, the 50-period moving average seen as the red line on the chart is also approaching this support area.
Second, we have nearly $ 15 horizontal support. This month proved to be both solid support and resistance. It was first tested on January 4 and showed a clear resistance, then the LINK price recovered, broke. A few days later, on January 12, LINK / USD went below after a very volatile downside momentum and once again showed resistance. So another key area to watch for Chainlink.
LINK has moved 23 percent with a volume of $ 8.2 billion in the past 24 hours. Chainlink has not lost its upward momentum as it reached another annual peak recently. However, the excess volatility scares traders, as the market structure currently offers weak risk / reward for opening another long position.
As mentioned, Chainlink has moved far from the previous big drop. A strong bearish signal can be seen with the close of the previous 4-hour candlestick. This indicates that the LINK price should see more declines in the coming hours.
The key level to watch right now is $ 21. If LINK / USD falls below this, a much more serious correction could be seen next week. This will start the movement towards the previously mentioned $ 18 and $ 15 support areas.
The area between the 50 to 100 simple moving averages will also provide additional information on where the price will find support. Additionally, the 50% Fibonacci retracement level is also close to the $ 18 support, while the 61.8 percent level is at $ 16.4.
Given how volatile the overall market is right now, Chainlink traders should expect more price action. Currently, LINK / USD does not offer a good trading opportunity. The best entry is shown as the $ 15 level.