- LINK battles ascending channel resistance amid widespread bear pressure.
- High consolidation is expected as long as the price stays above the moving averages.
Chainlink is a bull among a sloth of bears. Mid-through this week’s trading, the crypto continues to sustain gains. In fact, for more than three days, LINK has been recording a higher low pattern.
The remarkable performance comes after a couple of weeks of having to painfully endure battering by the bears. The price gravitated from the short-lived recovery mid-August. The double-cross of the 50 Simple Moving Average one-hour chart below the 100 SMA 1-hour chart resonated with the bear momentum action. Link lost balance and trimmed gains to the extent of exploring levels close to $2.0. However, a low formed at $2.13 (Fibonacci swing low) which later functioned as a stepping stone for the impressively ongoing recovery.
LINK/USD 1-hour chart
The staggering recovery blew away the bear pressure allowing gains in an elongated engulfing candlestick. A struggle occurred at the 50% Fib retracement level taken between the last swing high of $2.59 to a swing low of $2.1357. This necessitated a correction below the moving averages. LINK stumbled into unexpected support at $2.2 giving the price a push within an ascending channel.
Meanwhile, a weekly high formed at $2.59. LINK’s upside is limited by the channel resistance. On the brighter side, the price is trading above both the 50 SMA and the 100 SMA. In addition to that, the 61.8% Fib retracement level is glowing as the next support target. Moreover, as long as the 50 SMA stays above the 100 SMA, we are likely to see a rebound out of the channel resistance. Chainlink only needs to overcome the resistance of the channel for a compelling boost past $3.0.
LINK Key Technical Levels:
Trend: Bullish (short-term and long-term).
MACD: Hints continued bullish influence with the gradually increasing positive divergence.
Support Areas: $61.8% Fib level slightly above $2.4, $2.30 and $2.13 (previous support).
Resistance: $2.5, channel resistance and $3.0.