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Chainlink ($LINK) price shows strong bullish support at $14. Will this demand zone propel $LINK’s price beyond $20?
With the crypto market witnessing a minor recovery overnight, Chainlink has returned to the $15 psychological mark. On March 4, Chainlink bounced off a 24-hour low of $13.07, closing the day with a near 3% rise at $14.862.
The lower price rejection-driven recovery in Chainlink resulted in an intraday rise of 2.36%. Currently, Chainlink is trading at $15.21 but remains under the shadow of a significant 17% pullback from Monday.
Will this lower price rejection in Chainlink initiate a reversal rally toward the $20 psychological mark? Let’s explore.
Chainlink at $14 Hints at a Recovery Run
On the daily chart, Chainlink’s price action shows a massive bearish engulfing candle formed on March 3. With a pullback of 17.08%, bears undermined the weekend recovery of 18%, resulting in the lowest closing price since March 1.
Currently, the $LINK price action near the $14 mark shows multiple low-price rejections with long tail candles. This indicates strong bullish dominance at lower levels in the Chainlink price trend.
Additionally, this has led to a short-term recovery in Chainlink. However, the prevailing downtrend has caused a bearish crossover between the 50- and 100-day EMA lines.
This also increases the possibility of a death cross event between the 50- and 200-day EMA lines. The daily RSI has bounced off the oversold region and is now near the halfway mark, suggesting a potential surge in buying pressure.
Will Chainlink Price Surpass $20?
According to Fibonacci levels, the lower price projections for Chainlink come from the 23.60% Fibonacci level. Currently, $LINK’s price struggles to surpass the 38.20% Fibonacci level at $15.29.
Moreover, the 50% Fibonacci level, near $17.30, has been a high-volume area. Therefore, Chainlink must break above the 50% Fibonacci level for a bullish move beyond $17.31.
Thus, the crucial support for Chainlink lies at $13.12, with a key overhead resistance at $17.31. A bullish breakout could propel Chainlink toward the $20 psychological mark.
However, a bullish reversal from the 38.20% Fibonacci level at $15.29 could retest the $13.12 horizontal support level.
Analyst Warns Supply Surge Ahead
As Chainlink’s price action remains highly uncertain due to increased volatility, crypto analyst Ali Martinez projects a bearish outlook for $LINK. Ali points out that 2.23 million $LINK tokens have been moved to exchanges over the past two weeks.
The increased supply on exchanges has now reached 197.14 million $LINK tokens, potentially leading to a steep correction in the market price.