Chainlink (LINK) price shows strong bullish support at $14. Will this demand zone propel LINK’s price beyond $20?
With the crypto market witnessing a minor recovery overnight, Chainlink has returned to the $15 psychological mark. On March 4, Chainlink bounced off a 24-hour low of $13.07, closing the day with a near 3% rise at $14.862.
The lower price rejection-driven recovery in Chainlink resulted in an intraday rise of 2.36%. Currently, Chainlink is trading at $15.21 but remains under the shadow of a significant 17% pullback from Monday.
Will this lower price rejection in Chainlink initiate a reversal rally toward the $20 psychological mark? Let’s explore.
Chainlink at $14 Hints at a Recovery Run
On the daily chart, Chainlink’s price action shows a massive bearish engulfing candle formed on March 3. With a pullback of 17.08%, bears undermined the weekend recovery of 18%, resulting in the lowest closing price since March 1.
Currently, the LINK price action near the $14 mark shows multiple low-price rejections with long tail candles. This indicates strong bullish dominance at lower levels in the Chainlink price trend.
Additionally, this has led to a short-term recovery in Chainlink. However, the prevailing downtrend has caused a bearish crossover between the 50- and 100-day EMA lines.
This also increases the possibility of a death cross event between the 50- and 200-day EMA lines. The daily RSI has bounced off the oversold region and is now near the halfway mark, suggesting a potential surge in buying pressure.
Will Chainlink Price Surpass $20?
According to Fibonacci levels, the lower price projections for Chainlink come from the 23.60% Fibonacci level. Currently, LINK’s price struggles to surpass the 38.20% Fibonacci level at $15.29.
Moreover, the 50% Fibonacci level, near $17.30, has been a high-volume area. Therefore, Chainlink must break above the 50% Fibonacci level for a bullish move beyond $17.31.
Thus, the crucial support for Chainlink lies at $13.12, with a key overhead resistance at $17.31. A bullish breakout could propel Chainlink toward the $20 psychological mark.
However, a bullish reversal from the 38.20% Fibonacci level at $15.29 could retest the $13.12 horizontal support level.
Analyst Warns Supply Surge Ahead
As Chainlink’s price action remains highly uncertain due to increased volatility, crypto analyst Ali Martinez projects a bearish outlook for LINK. Ali points out that 2.23 million LINK tokens have been moved to exchanges over the past two weeks.
The increased supply on exchanges has now reached 197.14 million LINK tokens, potentially leading to a steep correction in the market price.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
