- Chainlink price expected to rise to $18.00 if bulls establish support above $17.00
- Nearest resistance at $17.00
- Closes support lies at $16.50
Chainlink (LINK) price continues its bullish rally as the asset records a remarkable start to 2021. Chainlink price is enjoying a bullish rally that has carried the price from lows of $11.50 to its current price of over $17.150.
The broader cryptocurrency market is also bullish as most major cryptocurrencies record double-digit gains across the seven-day period, with many coins recording profits upwards of 20 percent.
Chainlink price turned the year with low volatility as the price oscillated between the $12.00 and the $11.00 level. However, the price crossed above the $12.00 and established a foothold above the level on January 3. The support level enabled LINK to muster momentum for a bullish rally quickly.
Subsequently, Chainlink price volatility increased sharply as Chainlink price leaped past resistance levels climbing past the $14.00 level. LINK faced bearish pressure at the $14.00 level, but the bullish momentum did not disappear, and LINK continued rising after a brief correction to the $13.00 level. The price then rose above the $14.00 and established support at the level.
LINK observed strong bullish activity today, with the price rising by over 14 percent from the day’s opening price.
Across the technical indicators, the MACD shows increasing bullish momentum as the two EMAs continue diverging further. However, the RSI disagrees and suggests that LINK is overbought. The indicator is currently above the 70.00 mark issuing a sell signal.
Overall, across the daily frames, 18 of the 28 major indicators are issuing buy signals while only two indicators issue a sell signal. Meanwhile, eight indicators remain neutral, indicating no support towards either side.
The Bollinger Bands are expanding, suggesting increasing price volatility for LINK in the short term.
Traders should expect LINK to continue rising above the $20.00 level; however, LINK should be expected to observe a correction at the current level. LINK faces resistance in crossing above the $17.00 level.
If LINK leaves the $17.00 mark to climb above the $17.25 level in the next few hours, LINK can be expected to climb to the $20.00 level in the next few days. However, if Chainlink price fails to establish support above the $17.00 resistance level, LINK may consolidate above the $16.500 for the next 24 hours with chances of a bearish breakout.
Across the weekly frames, we can observe that LINK has fully left the descending channel it has been trading in since mid-November. The weekly charts now suggest bullish dominance in the markets and show potential in the bull rally.
Across the technical indicators, the MACD shows a bullish reversal while the RSI remains neutral. The Bollinger bands are expanding, showing increasing volatility across the weekly frames.
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