Crypto market daily performance. Source: Coin360
Chainlink hitting must-hold support and bounces
Chainlink has been hovering between a narrow range, as the $3.85-4 level is seen to be a resistance level while the $3.40-3.50 level can be confirmed as support.
As the price of Chainlink was moving towards that support yesterday, the big question arises whether it was capable of holding that level for support one more time. The result was a 10% bounce.
LINK USDT 3-hour chart. Source: TradingView
Just as Bitcoin is consolidating inside a range so is Chainlink. Support levels are clearly defined with the $3.40-3.50 area, while the resistance at $3.85-4 remains the key level to break.
As the range tightens, a volatile move can be expected to occur shortly. A breakthrough above the $3.85-4 resistance level will likely trigger continuation towards the $4.60-5 areas, while a breakdown below the $3.40 level indicates weakness and likely continuation towards $2.90 and possibly $2.25-2.40.
LINK USDT 1-day chart. Source: TradingView
As the chart is showing, the price of Chainlink has found support at the previous high of $3.40. As long as that remains support, upwards continuation is likely. The levels are clearly stated from previous highs.
A breakthrough above $4 warrants continuation and a possible move towards $4.85-5, which is equal to a breakout of Bitcoin above $9,300 since Chainlink usually follows the movements of Bitcoin.
Chainlink price drops in its BTC pair
LINK BTC 4-hour chart. Source: TradingView
However, is Chainlink showing strength recently, or is it Bitcoin that is holding up the USD level of Chainlink? The latter seems to be the case….