Consolidates Rebound off Uptrend Line

Chainlink (LINK) is heading marginally north after the slip to the $29.20 support level. LINK consolidates the rebound off the ascending trend line, holding onto the MA 50 support as it flirted With $32.

*LINK started a positive climb from the ascending trendline support
*The resistance above $33.15 halted the uptrend
*On-chain data indicates LINK accumulation by mid and large holder addresses in March

LINK price is trying to regain some losses after the slip to $29.20 in the prior day’s trading. LINK started a positive climb from the ascending trendline support on Mar. 24 overcame the MA 50 barrier and rose to highs of $33.15. The resistance above $33.15 halted the uptrend, triggering a pullback. LINK is presently consolidating its rebound, after reaching intraday highs of $31.45 during Sunday’s trading. In the larger picture, the bounce off the uptrend line confirmed the broader positive outlook. Chances for another bullish move are still rising as the MA 50 support holds strong. Further providing a tailwind to the Chainlink price is the recent accumulation by mid and large holder addresses owning between 100 to 100k $LINK.

Advertisement header-banner-ad

On-Chain Data Indicates Accumulation

Analysts from Santiment, an on-chain analysis firm spoke on Chainlink’s recent move while stating ‘We’re keeping an eye on mid and large holders owning between 100 to 100k $LINK, as they’ve accumulated greatly in March.’The whale transaction count which measures market participants’ transaction activity worth more than $100,000 saw a spike on April 2nd and such a spike could imply the entry of such individuals. Also, the whales holding 100,000 to 1,000,000 LINK tokens have increased by 6% from 251 to 267 from April 1 to April 3.

LINK/USD Daily Chart

LINK rose from an opening price of $28.72 during Sunday’s trading session before pausing the uptrend at $31.45. Break of the immediate resistance at $31.45 should see to uptrend continuation. Also, further rise is still in favor as long as the daily MA 50 at $29.15 holds. The RSI seems to be making its way up above its 50-neutral mark, though more progress is needed.

A sustained break above $31.45 will propel the LINK price to the resistance at $33.15 next. Higher, resistance could run towards all-time highs of $36.92, achieved in February. On the flip side, a break of the MA 50 support at $29.15 will likely extend the correction to $26.22 with another fall to $23.66 (ascending trendline support) before a halt.

LINK/USD 4-Hour Chart

LINK’s rebound resumed on April. 4 after hitting support at $28.72 which marks the convergence of the MA 50 and 200. Chainlink price is returning lower after the pullback off the $31.45 barrier. If selling pressure increases, bearish traders might target $29.76 with a retest of support at the MA 50 ($28.72) on the cards. Investors could challenge the uptrend line again at this key support. If the price continues to drop, support could next come from the $26.26 and the $23.73 levels.

Should the LINK/USD pair turn north from the MA 50, the $31.50 could provide immediate resistance ahead of the $33.15 barrier. A step higher could meet resistance at the all-time high of $36.72. The RSI flattening out slightly above the mid 50 reading however suggests that Chainlink’s price might consolidate for a few more days. Then the LINK/USD pair could likely trade sideways between the $24 to $32 range within this period.

Key Levels
Resistance Levels: $40.00, $36.92, $33.00
Support Levels: $27.50, $23.75, $18.50

Image Credit: Tradingview

Note: is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event.

Source link

Related posts

Leave a Comment