Chainlink Price Analysis: LINK Bulls defended $13.5 Support; Can They Break $16.75?

Due to a huge correction in the last two weeks, LINK price lost around 50% in value. The LINK/USD pair has dropped to the crucial support of $13.5 looking for sufficient demand. The coin chart shows several lower price rejection candles at the bottom support registering a 20% gain in the last six days. If the buyers could sustain this momentum, the coin could enter a recovery phase above $16.75.

Key technical points: 

• LINK token technical chart shows a bearish crossover of the 100-and-200-day SMA
• The intraday trading volume in the LINK token is $791.5 Billion, indicating a 9.31% fall.

Source- Tradingview

In our last coverage of Chainlink technical analysis, Coingape warned about a further drop in LINK/USD pair as this coin sinks below the $20 floor. Under the influence of the crypto bloodbath, the seller engulfed another floor support of $16.75 and dropped the coin to yearly support of $13.57.

• The LINK price has been discounted by 50% from the previous swing high of $28.5. The token buyers show strong interest in the current market value($16.28), displaying long lower price rejection in the technical chart. 
• The daily-Relative Strength index(34) recovered from the oversold region challenges the 14-SMA line. However, more buying pressure would be required for successful crossover above the midline.
• This recent sell-off has triggered a bearish crossover of the 100 and 200 SMA, encouraging the seller to continue the bear attack.

Recovery Rally Needs $16.75 Breakout

Source-Tradingview

This week the LINK price action showed a whipsaw movement between the $16.75 and $13.57. Such minor consolidation avails a recovery opportunity for buyers once the coin pump above the overhead resistance.

However, the downside risks are substantial as a shift sell-off could violate the bottom support of $13.57, leading to further downsizing.

Bollinger band indicator moving sideways completely engulfs this week’s price action. The token price moving higher to the middle line aims to retest the $16.75 resistance.

• Resistance levels- $16.75, $21
• Support levels are $13.57 and $11.5.