• Chainlink price collapse on March 22 broke significant support.
  • Lack of buying intensity undermines credibility of the 20% rebound.
  • Pivotal resistance above will determine price direction for the next 2-3 weeks. 

Chainlink price rebound is compromised by the down-trending 21-day simple moving average (SMA) at $28.41 and the flattening 50-day SMA at $29.03. A breakout above the confluence of moving averages requires a more outstanding commitment than daily volume running at less than half the average. For now, the 20% rebound over the last five days has to be viewed as a corrective process of the extreme oversold condition shown on the 4-hour chart on March 24.

Chainlink price follows the broader strength in the cryptocurrency complex

The tag-along advance is consistent with weaker cryptocurrencies. Still, with ample resistance just above the current price level, traders should be preparing for a reassertion of the selling to carry LINK to the 100-day SMA at $23.55, a trend-spotting indicator that has not been tested in the first days of 2021.

The February 23 crash low at $21.00 is compelling price support and will ignite a bounce, but a bearish outlook needs to entertain the August 2020 high at $20.00 as the final resting place for LINK, yielding a loss of 29% from today’s price.

LINK/USD daily chart

LINK/USD daily chart

If LINK can overcome the key moving averages’ resistance, it will empower the altcoin to test the March 9 high at $32.00. A breach will put the February 20 high at $36.92 in the crosshairs of the bulls.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

Since XRPArmy and lawyers in the crypto ecosystem consider the US Securities & and Exchange Commission’s (SEC) move to pull documents out of public view as evidence that the case is coming to a close, a Ripple win appears more likely.

More Ripple news

Bitcoin Weekly Forecast: BTC must hold $45K to target new all-time highs

Bitcoin price is on a rollercoaster ride as it crashed violently on September 7, consolidated for a few days after that and went on an uptrend to undo the losses. Over the past 24 hours, however, BTC seems to be consolidating for a volatile move without a clear directional bias.

More Bitcoin News

Chiliz price to retrace before CHZ runs up

Chiliz price is stuck in a tight consolidation above a crucial support floor and shows no signs of recovering from this slump. In fact, CHZ might retrace lower before heading on an uptrend.

More Chiliz News

ICX Price Prediction: ICON prepares for 20% descent as bulls fade away

ICON price looks ready for a swift downswing after an explosive run over the past ten days. The crypto markets’ slowdown after the recent run-up makes this bearish scenario a perfect fit. Going forward, investors can expect ICX to head lower and retest stable support barriers.

More Cryptocurrencies News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP