Key Insights:
- Chainlink holds strong at $17.50 support, eyeing $21.
- Bullish Fair Value Gap (FVG) signals continued upward potential.
- Key resistance at $20 could pave the way for higher targets.
Chainlink (LINK) price has recorded a bullish run over recent weeks, with key support levels maintained as it seeks to reach a price target of $21. The crypto is in strong form as it consolidates above critical technical areas, positioning itself for further upside. Sergey Nazarov, Chainlink’s co-founder, is also working on further developments for Chainlink.
Chainlink Holding Key Support Levels
Chainlink has had a strong upward trend and has not slowed down with minor corrections. Recently, the price reached $20, a significant resistance level that corresponds with the 50% Fibonacci retracement level. As the chart indicates, the price recovered at the area of $17.50, proving that this area can be considered a significant support area.
The support at $17.50 has been sustained, showing a higher low support within the past weeks, which indicates that the bull run is far from over. So long as LINK maintains a position above this, getting to the $21 position is evident. Although some minor reduction towards the $20 resistance level has occurred, this is considered holding consolidation before the next rally.
Chainlink’s Bullish Fair Value Gap (FVG) and Trend Continuation
Market analyst CryptosBatman notes that Chainlink is currently positioned within a strong bullish Fair Value Gap (FVG), a pattern that has historically led to positive price reactions. The price is currently held within a strong bullish FVG area, suggesting the Chainlink bull run still has room to run as it remains within this FVG.
FVGs have been reliable in previous market cycles, and the green check marks on the chart indicate areas where this pattern held in the past. Chainlink’s ability to maintain its position above this FVG zone increases the likelihood of reaching the next resistance level at $22. Chainlink may target $30–$35 if the current momentum continues.
Technical Indicators and Market Sentiment
The price of Chainlink is trading at $19.41, having recently broken above its previous resistance levels, with the upper Bollinger Band indicating a strong bullish run. The recent surge has pushed the price higher, close to $20.14, near a key resistance level.
The RSI (Relative Strength Index) is at 81.19, signaling that the market asset is overbought. The market is likely to experience slight retracements before a price surge. Meanwhile, the Cumulative Volume Delta (CVD) shows a significant negative value, indicating that sell pressure outweighs buy pressure in some areas.
Long-Term Outlook and Market Sentiment
The market sentiment towards Chainlink also looks positive. The Top Trader Long/Short Ratio shows that top traders on the market are increasing long positions, and it is a sign of confidence among traders related to the bullish future of the asset. More long positions indicate that traders are betting on a continued price increase, further confirming the prevailing bullish sentiment.
The distribution of the Chainlink holders also supports this market outlook. Most of the addresses that purchased LINK at earlier lower price points between 0 and $10.46 could now find themselves in profit, indicating that the price will have support at such price ranges. However, at higher price points above $20, there are areas of resistance where traders may be holding positions at a loss.
Sergey Nazarov, Chainlink Co-Founder, recently joined the Advisory Board of DigitalChamber, where he will work on the development of blockchain technology, smart contracts, and secure digital assets. Nazarov is going to collaborate with top industry players in an attempt to influence the future of the on-chain ecosystem.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
The post Chainlink ($LINK) Price Eyes $21 After Holding Key Support appeared first on The Market Periodical.
