ChainLink Technical Analysis: LINK/USD could still bounce back up if $13 is defended

LINK/USD is currently trading at $13.33 after an overall market weakness.
ChainLink had a massive bull rally towards $20 outperforming the majority of the market.

Lorenzo Stroe Independent Analyst

There is a descending triangle pattern formed on the daily chart that indicates a possible bounce for LINK if the $13 support level is held. The entire cryptocurrency market took a big hit in the past 24 hours after the U.S. stock market dropped as well.

LINK/USD daily chart

As mentioned above, the $13 support level is now the most crucial point for the bulls in the short-term. Both the daily 12-EMA and the 26-EMA have already been lost. There is also another support level nearby at $12.09 established on August 11. As for resistance levels, LINK bulls are facing a significant one at $17.77 and the upper trendline of the descending triangle.

At this point, anything above the upper trendline could be considered a signal to buy while a clear loss of $13 might be a trigger for another leg down towards $12. The next bullish target would be around $17.77 where a notable resistance level is currently established.

Author

Lorenzo Stroe

Independent Analyst

Lorenzo is an experienced Technical Analyst and Content Writer who has been working in the cryptocurrency industry since 2012. He also has a passion for trading.