Chainlink (LINK) has exhibited promising technical patterns that could ignite a price surge. According to The Contra Bear, a crypto analyst, the last time LINK was supported by the 20-day moving average (MA), it surged from $6 to $20, a 250% increase.
Significantly, LINK is now approaching this pivotal support level once again. Moreover, analysis platform altFINs has revealed key price levels for LINK to watch, highlighting potential trading opportunities.
The last time that $LINK got supported by the 20 day MA, We saw a pump from $6 to the $20 level, that's about 250%We're about to get supported by it again. pic.twitter.com/aoh9gaMiJU
— The Contra Bear (@TheContraBear) June 6, 2024
Chainlink (LINK) Price Analysis
The analysis by altFins highlights a bullish breakout from a Channel Down pattern, positioning LINK above its 200-day moving average. This breakout indicates a resumed uptrend, with the current price pullback nearing the $17.00 support level.
Traders might view this as an opportunity for a swing trade, anticipating a potential 15% upside to the $20.00 mark. A stop loss is suggested at $15.80 to manage risk effectively.
Source: altFINS – Start using it today
The pattern identified is a pullback in an uptrend. Despite the recent dip, LINK’s price remains in an overall uptrend. This pullback might present a “buy the dip” opportunity, especially as the price nears the established support level of $17.00.
Historically, prices often stabilize and resume their uptrend at such levels, known as the concept of polarity, where previous resistance levels become new support zones.
LINK Price Prediction and Key Levels
Momentum indicators, such as the RSI-14, show that LINK is neither overbought nor oversold, with RSI levels between 30 and 70. This balanced momentum suggests that there is still room for price movement without hitting extreme levels.
The nearest support zones are identified at $17.00 and then $13.00, while the nearest resistance zones are at $20.00 and $23.00. These levels provide crucial reference points for traders to gauge potential price movements.
The short-term trend for LINK is currently up, indicating a positive outlook in the immediate future. The medium-term trend is strong up, reinforcing the potential for continued growth. However, the long-term trend remains down, suggesting that while short to medium-term gains are possible, traders should remain cautious of longer-term market dynamics.
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Conclusion
Chainlink’s current positioning near the 20-day MA support, combined with historical price patterns and trend analysis, points to a potential price rally. Traders should monitor the $17.00 support level for a possible swing trade entry, aiming for a target of $20.00 while maintaining a stop loss at $15.80.
The balanced momentum and defined support and resistance zones provide a structured framework for evaluating LINK’s price movements in the coming days. Consequently, if LINK follows its previous patterns, we could witness another substantial price increase.
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The post Chainlink’s LINK Poised for 250% Price Rally: Technicals and Key Levels to Watch appeared first on CaptainAltcoin.
