Chainlink hits a brick wall on the approach to $12.6

Chainlink (LINK) bottomed at $8 on December 23 following the massive sell-off on the cryptocurrency market. The coin managed to recover to above the critical barrier of $10.5 and tested $13.22 on Sunday, December 27. By the time of writing, LINK retreated to $12.30; however, it is still 10% high on a day-to-day basis

The recovery helped LINK to regain 9th position in the global cryptocurrency market rating. The coin's current market capitalization is registered at $4.8 billion; an average daily trading volume settled at $2.2 billion.

LINK is in good shape as long as it stays above $10.5

From the technical point of view, LINK is supported by the upward-looking daily EMA200 at $10.5. A sustainable move above this area after the sell-off improved the technical picture and allowed for an extended recovery. However, the further upside may be limited by $13. This resistance reinforced by the daily EMA50 stopped the bulls on Sunday and pushed the price back inside the range. 

LINK, daily chart

A sustainable move above this area will open up the way towards $15 and $16.4 (November 24 recovery high).

Meanwhile, according to In/Out of the Money Around Price (IOMAP) data, the price faces a brock wall on the approach to $12.6. About 14,500 addresses purchased over 78 million LINK tokens from $12.4 to $12.6. If this area is cleared, the bullish momentum will gain traction as there are no significant barriers until $14.

LINK, In/Out of the Money Around Price (IOMAP)

On the other hand, the way to the South seems to be a path of least resistance now. Minor support comes on approach to $12; however, if it gives way, the above-mentioned $10.5 will come into focus.