LINK/USD is trading above a critical trendline and could target weekly highs near $35.
The price of Chainlink rose about 13% over the past 24 hours and roughly 23% for the week, as bulls push for a fresh break above $20. The 14th-ranked cryptocurrency posted $1.2 billion in 24-hour trading volume and is trading near $19.10 following sustained buying amid a broader crypto market recovery.
As the market attempts to break above a downtrend line that has been in place since May, LINK buyers may try to close the week above $20 and revisit resistance last seen on June 20. Short-term prospects for LINK/USD therefore hinge on how the token and the wider market respond to current seller activity.
Chainlink Price Analysis
Chainlink’s integration with the Avalanche blockchain coincided with upward momentum in LINK’s price, although the weekend began with indecision, evidenced by the long wick on Friday’s candle. That indecision resolved to the upside over the weekend and extended into early trading Monday.
At the time of writing, LINK is positioned just above the 50-day moving average ($19.05) after breaking the downtrend line that capped prices since late May, as shown on the daily chart.
This breakout has occurred amid reduced selling pressure, allowing bulls to push above the trendline and reach an intraday high of $19.54. Confirming the bullish trend could enable LINK/USD to establish support near horizontal resistance at $19.68 and set the stage for a renewed attempt to take out levels above $20.
Technical indicators support the immediate bullish outlook. The relative strength index (RSI) has climbed above the 50 midpoint, suggesting buyers remain in control. The moving average convergence divergence (MACD) also reflects bullish momentum, having produced a bullish crossover and rising above its signal line.
If bulls can clear $20, initial upside targets include the 50% and 61.8% Fibonacci retracement levels at $24.33 and $26.91, respectively. Weekly gains could extend toward $35 if the rally retains its momentum and continues to attract buying interest.
On the downside, renewed selling pressure could force buyers to defend gains near $18 on a daily close. Key support levels to watch are $16.79 and $13.42 if the current recovery loses steam.