- Chainlink has bounced from a 24-hour low of $13.07 to trade near $15.21, recovering from a lower price rejection.
- Technical signals show strong bullish dominance near the $14 level, though the overall trend remains uncertain due to a bearish EMA crossover.
- Key resistance lies at the 38.20% Fibonacci level ($15.29) and the 50% Fibonacci level (~$17.30); breaking these is crucial for a move toward $20.
Chainlink (LINK) has shown signs of recovery amid a volatile trading session, bouncing off a 24-hour low of $13.07 and closing the day with a rise to $14.862.
With the broader crypto market witnessing a minor recovery, LINK has returned to a key demand zone around $14, prompting traders to wonder whether this level could launch the altcoin beyond the $20 psychological mark.
On the daily chart, Chainlink’s price action reveals a massive bearish engulfing candle formed on March 3 that pushed the price down by 17.08%, undermining an earlier 18% weekend rebound.
Currently, LINK’s price near the $14 area displays multiple low-price rejections with long tail candles—a sign of strong bullish support at these lower levels.
Chainlink trend remains mixed
However, despite this short-term recovery, the overall trend remains mixed. A bearish crossover between the 50- and 100-day EMA lines raises concerns, and there is a potential risk of a death cross between the 50- and 200-day EMAs.
The daily RSI, which has bounced off the oversold region and is now near the midpoint, suggests that buying pressure could build. Fibonacci levels further illustrate the challenge: LINK is struggling to break the 38.20% retracement level at $15.29, and the high-volume 50% Fibonacci level near $17.30 appears as a significant resistance area.
A bullish breakout above the $15.29 and $17.30 levels is crucial. Should LINK manage to close above these key thresholds, it could pave the way for a rally toward the $20 mark. Conversely, a reversal from the 38.20% level might see LINK retesting the $13.12 horizontal support, potentially stalling the uptrend.
Adding to the caution, crypto analyst Ali Martinez has flagged a supply surge as a potential risk. Over the past two weeks, 2.23 million LINK tokens have been moved to exchanges, pushing the total on-exchange supply to 197.14 million tokens. This increased liquidity could trigger profit-taking and lead to a steep price correction, further complicating the bullish outlook.
