Chainlink Technical Analysis: LINK/USD hits a descending channel barrier delaying recovery to $20

Chainlink has been unable to recover after the slump from the 2020 high at $20. The breakdown initially found support at $13 aided by the descending channel. There was a recovery but buyers hit a wall at $16. Since then, LINK/USD has remained pivotal at $15.

LINK’s meteoric rise has been attributed to the massive growth in decentralized finance ecosystem. The network claims to be at the center of DeFi by fashioning investors with life feed price data.

The inability to rally back to $20 shows that investors are looking at other DeFi projects like Aave, Compound and Curve Finance. All of which continue to hit new highs in regards to the amount of locked funds.

Technically, Chainlink could continue with the consolidation while holding onto support at $15. On the upside, sustained price action above $15 is likely to gain momentum past the hurdle at $16.

More resistance was previously highlighted at $18 during the rally to $20 earlier this month. Analysts still believe that Chainlink can hit $20 again but this recovery is unlikely to be as sharp as the surge in August.

LINK/USD 2-hour chart