Chainlink (LINK) Turns Bullish. Another Rally Ahead?

• Despite a global market dip, Chainlink (LINK) tops the gainers list with a 16% rally.
• LINK recorded an intraday trading volume of $1 billion, indicating a 56% gain.

While the global crypto market is facing a downturn, Chainlink (LINK) displayed a notable uptrend, rebounding from a test of the 50-day exponential moving average (EMA) observed in the previous trading session. The bulls showcased probability, recovering over 16% of the prior day’s losses, propelling LINK’s value higher.

Chainlink encountered a setback when bulls faced resistance at $17.67, a level recorded at the end of 2023. However, after a brief period of sideways trading, the cryptocurrency had been consolidating within a range of $12.5 to $14 before experiencing a surge in momentum.

Also, despite the correction, LINK managed to stay above the key simple moving average (SMA) at $15, indicating short-term strength. Amidst a loss of market momentum, LINK displayed a positive movement, surging from $14.27 to $16.52. The bulls successfully maintained the price above the crucial support level of $15.5, initiating a rebound.

Chainlink (LINK) Price Chart (Source: CoinMarketCap)

Will Chainlink (LINK) Reach $20?

Over the past three months, Chainlink’s crypto price has more than doubled. The broader term outlook remains positive, with the daily price chart indicating a significant lead over the 200-day EMA, reflecting a bullish trend. 

If bulls manage to breach the crucial resistance level of $17.49, LINK is poised to gain further momentum and challenge the upper resistance at $18.87. Sustaining at this level could pave the way for an attempt to reach the $20.02 resistance.

Conversely, a lack of market momentum could lead to a loss of bullish traction, causing LINK to retreat and test the support level of $15.03. If bearish sentiment dominates the market, a further decline may see LINK test its lower support level at $12.88.