December 2, 2020
By Benson Toti
ChainLink (LINK) price has rebounded to highs of $13.87 after trading as low as $13.08, with bulls targeting a short term breakout to $17.00
ChainLink’s price remains negative both on the daily and weekly time frames despite bulls’ latest efforts that include a jump to highs of $13.87. This follows the widespread sell-off in the crypto market that saw LINK/USD drop to $11.90 on 26 November.
At the time of writing, the LINK token is down 5.69% in the past 24 hours and has fallen 11.08% in the past seven days as bulls attempt to break above $14.00.
On the technical front, price charts suggest bulls might rally to $17.00 short term before running out of steam.
LINK/USD daily chart
As can be seen on the daily chart below, prices oscillated within an ascending parallel channel formed in October. The upper trendline of the channel now presents a hurdle around the $17.00 price level.
The chart nevertheless suggests a negative flip is possible if buying pressure dissipates before a breakout above the said resistance level. In this case, bears would eye $13.00 and then $11.00.
LINK/USD 4-hour
The 4-hour and hourly charts present an interesting set-up for both bulls and bears.
In both cases, LINK has recovered to trade just above the lower boundary of an ascending parallel channel. As such, bulls need a breakout towards the midline to signal a continuation of the bullish case seen over the past several hours.
Bears, on the other hand, will be eyeing a breakdown beneath the lower boundary to strengthen their case as they seek to strike another blow to bulls’ short term aspirations.
On the 4-hour chart, LINK price is near the lower boundary of the ascending parallel channel around $13.77 and the 20-EMA line at $13.68.
If bulls crack resistance at the middle line around $13.90, the next hurdle is $14.45. The price level features the 78.6% Fibonacci retracement level of the move from $15.87 high to $11.98 low.
A breakout above this hurdle on increased upside momentum could see bulls target the level around $17.00.
However, a bearish scenario will unfold and strengthen if LINK/USD retests the lower trendline and dips below $13.00
LINK/USD 1-hour chart
On the 1-hour chart, the outlook is much the same. Bulls need to keep prices above the 20-EMA as they target the 61.8% Fibonacci level ($14.25).
A clear break above this level will signal the intention to attack the upper trendline near $15.30. If not, bears will remain in the picture.
https://coinjournal.net/news/chainlink-price-bulls-eye-breakout-to-17-00/
