Chainlink (LINK/USD) Maintains New Year Gains. Time to Buy?
Sophia Cruz • 2 min read
After seeing most of its gains from October up to November 10 wiped out in a bearish market that lasted up to mid-December, Chainlink’s token, LINK/USD, is showing signs of revival. The token topped $28 on January 9, which was up from a low of $17.2 on December 16. A series of events, including the announcement of the introduction of AccuWeather into the Chainlink ecosystem, boosted the token, which has continued to surge since then.
LINK/USD has also maintained an uptrend in the new year, jumping from the lows of $19.5 on January 1. At the current trading rate of $27.3, LINK/USD has posted gains of about 24% in the last seven days, making it among the few top gainers in 2022.
LINK/USD – A Daily Chart Technical Outlook
LINK/USD Trading Above $25 Key Support
A look at LINK/USD on the daily chart shows that it is well above $25, which is the established support level. The token shows a clear bullish momentum, based on recent price movements, with no signs of major weakness. Besides this, the 14-day moving average (red) and the 9-day moving average, which have joined the support since the beginning of the year, are below the current price.
LINK/USD Trade Analysis
LINK/USD is looking up, based on the technical indicators. After breaking past the $25 level, which was acting as resistance, LINK/USD is aiming higher, and could soon reach previous tops. Nonetheless, LINK/USD faces a hurdle at the resistance zone of $28. Already, the prices have retraced since reaching $28.5 on January 9. Thus, LINK/USD must clear the $28 level for the continuation of the bullish momentum.
LINK/USD Trading Idea and Concluding Thoughts
I expect a short-term retracement on LINK/USD after hitting the resistance at $28. An RSI reading of 67 also suggests that LINK/USD is approaching the oversold zone, and some market indecision at the resistance zone could take the price lower.
LINK/USD is likely to retrace, which could take the price to the $25 support. As a buyer, I would be interested in a price of $25, as this is the level at which the token has shown a lot of price action in the past, and it could begin a bullish reversal after the current retracement. Key levels to target for a buy in LINK/USD are at $28, $30 and 34, or higher, depending on the crypto sentiment and momentum in the coming days. A violation of the level at $25, to the downside, could see the LINK/USD down to the next minor support at $23, or lower at $20. Good luck!