The Chainlink price is trading at $19.5 with a negative bias as of 4:00 am EST. LINK has displayed a remarkable rally over the last week, with 12.6% weekly gains. Market participants are expecting more price growth for the Oracle’s token as it trades in a highly bullish chart pattern.
Chainlink bulls seek a return to areas above $20
LINK has had an impressive run in 2024, posting more than 80% gains from the Jan. 6 low of $12.6 to set a swing high at $22.89 on March 11. This was followed by a steep fall that saw the token lose 25% of its value to seek solace from the buyer congestion zone at $16 before sharply recovering to the current.
This price action led to the appearance of a V-shaped recovery chart pattern on the daily chart, as shown below. This bullish technical formation has seen the LINK price flip two resistance levels into support at $16.86 and $18, respectively.
This support-resistance flip suggests a change in market sentiment from bearish to bullish, with the previous resistance level capping the price movement, becoming a new support level that the price may seek defense from.
Traders may consider entering long positions when the price successfully retests the neckline of the prevailing chart pattern at $21.7. Such a move would represent an 11% uptick from the current price.
TradingView Chart: LINK/USD
Multiple technical indicators supported Chainlink’s bullish narrative, starting with the Relative Strength Index (RSI), which is northbound with a pending buy signal. If buying pressure increases, the RSI could cross above the 70 lines into the overbought region, suggesting that the buyers are in control.
On the other hand, a rejection from the current level could see Chainlink price drop below the $18 psychological support. If this level fails to hold as support, the altcoin could slump to retest the $16.86 support.
In highly bearish cases, the LINK price could descend below $13.75, which would invalidate the bullish thesis.
