The recovery almost hit $14, but LINK retreated to confirm near-term support before resuming the uptrend. For now, the decentralized smart contract oracle token is trading at $12.5. The immediate downside is supported by the 100-day Simple Moving Average (SMA). On the upside, LINK is battling the resistance at $13 to bring into the picture gains towards $20.
A break above $13 will go a long way, encouraging more buyers to join the market. An increase in buy orders will have a ripple effect on the buying pressure, catapulting Chainlink to $20. However, price action will remain limited in the short-term due to the low trading volume witnessed in the market.
It is worth mentioning that forming an ascending triangle pattern on the daily chart is a bearish sign for LINK. In this case, the preceding downtrend might come into the picture, mostly if the hurdle at $13 is not overcome. On the downside, the 100-day SMA is in line to offer support, while the 50-day SMA will prevent losses under $10. If declines overshoot $10, the 200 SMA will come in handy, slightly above $8.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com