Chainlink (LINK) – Setting the stage for a fresh bull runPosted on Thursday, January 20 2022 at 8:34 pm GMT+0000
Chainlink (LINK) is gaining some traction off the 61.8% Fibonacci retracement level of the December – January bullish wave at 21.30 attempting to snap the last impressive losing streak. This support area encapsulates the 78.6% Fibonacci level of the last up-leg and the ascending trendline, hence its importance.
Momentum oscillators are hinting at a potential improvement in market sentiment. The stochastic %K line has overstepped the %D line in the oversold territory, and the momentum indicator reacted on its December 20 support, both suggesting that buyers are fighting back.
Therefore, if Chainlink manages to set a strong foothold around the aforementioned support zone, the bulls will likely push towards the mid-Bollinger band around 24.60. By overstepping that line, they will next challenge the most recent high at 28.74, in an attempt to underpin the current structure.
Alternatively, by cracking the 21.30 support floor and the neighboring lower-Bollinger band, sellers will instantly call for a fresh test of the December 31st low at 19.12, where any violation will critically dampen the technical picture and intensify selling pressures towards the crucial December 4th low at 16.71.
Summarizing, LINK staged an impressive start to 2022, and despite the last 10 days’ pullback it is still maintaining a clear bullish bias. The recent bounce off the diagonal support increased odds for a fresh bull run.