LINK breakout, what’s next?

ChainLink (LINK) has risen since April 18th. It continues to hit a new all-time high (ATH) on May 5.

LINK is close to reaching a critical Fib resistance level, which could trigger a rejection in the short term. Even so, the trend is considered bullish as long as the token is traded above the $ 42.70 support zone.

LINK hit a new all-time high

LINK has risen since April 18th. On April 27th, it broke through the previous resistance zone at $ 35 and confirmed this area as support for the next few days (green arrow) .

The rate of increase accelerated on May 4 and LINK hit a new all-time high of $ 51.20 the next day.

Technical indicators are on the rise. This is especially clear when the Stochastic Oscillator produces a bullish cross and the RSI line crosses above 70. In addition, the MACD is in the positive zone and rising.

Further resistance zones are found at $ 53.30 and $ 67.80. These are the 1.61 and 2.61 Fib retracement levels of the most recent decline.

Daily LINK / USDT Chart | Source: TradingView

Short-term movements

The shorter six-hour chart shows a break above the descending resistance line, leading to the current all-time high.

Neither the MACD nor the RSI is showing any signs of weakness, although the latter is in the overbought zone.

If LINK pulls back in the short term, the $ 42.70 zone is expected to act as support. This is the all-time high before that. The trend is considered bullish as long as the token is traded above this level.

6-hour frame LINK / USDT chart | Source: TradingView

LINK / BTC

Similar to the USD pair, LINK / BTC broke above the descending resistance line. However, it has yet to reach an all-time high. In fact, it is just approaching the 0.5-0.618 Fib resistance levels at 102,000-118,000 satoshi.

Though the technical indicators are bullish, rejection is probable at these levels, before the uptrend resumes. If so, the nearest support is found at 70,000 satoshi.

Daily LINK / BTC chart | Source: TradingView

Conclude

LINK is expected to continue rising to new all-time highs. While it may be rejected shortly, the token is unlikely to drop below the $ 42.70 zone.

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