Chainlink has laid the ground for a recovery following an oversold RSI and a bullish crossover on the MACD. A move above the 4-hour 20-SMA and 38.2% Fibonacci level would open a route towards the $34-mark, provided bulls are able to successfully negotiate past certain swing highs at $30 and $31.5.
At the time of writing, LINK traded at $27.9, down by 1.8% over the last 24 hours.
Chainlink 4-hour Chart
Source: LINK/USD, TradingView
Chainlink attempted a revival after an up-channel breakdown triggered a 22% sell-off between 15-18 November. Although $26-support offered momentary relief, LINK needed to smash past its 20-SMA (red) and 38.2% Fibonacci level to rebuild its price.
The region between $30-$31.5 also posed some challenges since the 50-SMA (yellow) and 200-SMA (green) posed as resistance. Expect a round of consolidation within this zone as buyers and sellers battle for market control. From there, a move above 27 October’s swing high of $34 would flush out the remaining sell pressure and allow for an uptrend to emerge.
On the flip side, LINK would be exposed to another 10%-22% decline should its price weaken below $26. Bulls would look to introduce new longs at defensive lines of $23.5 and $20.8.
LINK’s comeback was backed by a bullish crossover on the MACD and a double top on the Awesome Oscillator. The RSI’s oversold nature also demanded a quick revival. However, keep in mind that each…