• Chainlink price has reached a technical inflection point.
  • LINK volume on institutionally viable exchanges doubled its previous quarterly high in Q1.
  • Weekly Relative Strength Index (RSI) not confirming the February and April price highs.

Chainlink price rallied almost 40% from the breakout on April 2 and reached the topside trend line target outlined in an April 5 FXStreet article. The immediate outlook is focused on consolidation that should oscillate around the trend line at $44.20 and the 261.8% Fibonacci extension of the August-September 2020 correction at $40.52.

Chainlink price is exciting crypto hobbyists looking for the next breakthrough token

The current Intotheblock In/Out of the Money Around Price (IOMAP) data shows substantial support for LINK around today’s low with 3.72k addresses buying 2.77 million LINK. It suggests that the consolidation should not deviate too far below $38.04.

LINK IOMAP chart

LINK IOMAP chart

LINK has been the beneficiary of a stronger cryptocurrency complex in April and a series of new developments for the blockchain that will continue to propel higher in the list of market capitalizations. Before that continues, the altcoin should consolidate the near 40% gain before making a second attempt to overcome the topside trendline resistance, currently at $44.20.

The consolidation process needs to hold above the 38.2% retracement of the rally off the February low at $35.44, but ideally, the February 20 high at $36.92 should contain the selling.

Upside targets include the 161.8% extension of the February correction at $46.76 and then the 361.8% extension of the August-September 2020 correction at $53.22.

LINK/USD daily chart

LINK/USD daily chart

The bearish momentum divergence of the RSI with price at February’s high and this month’s high raises concern over whether LINK can commit to higher prices moving forward.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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