Chainlink Technical Analysis: LINK flips resistance into support, $17 level eyed
|- Chainlink has the potential to extend price action above $13, but on-chain data highlights resistance towards $14.
- LINK/USD could plummet to $11.83 support if a reversal ensues from the prevailing market value.
Chainlink has made tremendous progress since the massive drop to $9.30 in the first week of September. Initially, recovery was drastic, with the price quickly climbing above $10 and extending the bullish leg to test critical resistance at $13.50. However, dwindling buying pressure coupled with increased selling activities resulted in another dip, but this time support at $11 kept the bears at bay. At the moment, LINK/USD has recovered above $12.50 resistance (flipping it into support) in a bid to sustain gains above $13.
LINK/USD 1-hour chart
Chainlink smart contracts solutions keep the community on edge
Chainlink continues to establish itself as the provider of robust and reliable tamper-proof inputs and outputs for complex smart contracts projects in the blockchain industry. In June, Google started looking into Chainlink for its approach to smart contracts adoption. The integration is currently helping users to connect to Google’s BigQuery, a leading cloud service.
On Wednesday, September 9, Chainlink, through its Twitter account, announced that SDR-backed Sogur Currency (SGR) had tapped into its network to consume the live Price Reference Data. SGR hopes to “bring added transparency and security to the minting process by ensuring that real digital assets back new supply.” Sadeh Man, SGR founder, and chairman said in a statement:
We continuously strive to provide our currency holders control over the project – by providing external oracles as we did with Chainlink and allowing our holders to exercise control by voting and supervising us.
Chainlink technical analysis
After flipping $12.50 into support, LINK bulls are working extra hard to capitalize on a potential triangle breakout that could propel the price to $17. Meanwhile, Chainlink is trading above the 50 Simple Moving Average (SMA) at $12.66 in the 4-hour range. Trading above this moving average signaled a potential upswing like the spike in the price on August 28 when LINK/USD advanced from $15 to $18. The likely move upwards, coupled with a possible triangle breakout, could catapult the crypto above the 100 SMA resistance at 14, short-term resistance at $16, and the medium-term hurdle at $17.
LINK/USD 4-hour chart
A broader look at the daily chart still shows the price above the 50-day SMA. LINK is also trading within a descending channel. If the ongoing bullish momentum steps above the 61.8% Fibonacci level, there is a big chance the price will spike above the channel resistance and open the door for gains heading to $17. The Relative Strength Index (RSI) highlights the increasing buying activities with a likelihood of extending motion above the midline (50).
LINK/USD daily chart
IntoTheBlock In/Out of the Money metrics shows that LINK is heading into a challenging resistance zone between $12.99 and $13.27. The range attracted a volume of 20.96 million LINK tokens. However, if broken, the path to $15 would be relatively easy.
In/Out of the Money chart
On the downside, the initial support range (at the Money) holds just over a third of the initial resistance range volume. In other words, if a breakout fails, a retreat from the current price level could see the price tumble to the critical support at $11.83 - $12.21.
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