- Chainlink follows an ascending trend line since early January.
- $25 aligns as interim resistance before LINK can test record highs.
- Key support is located at $20 if price breaks below trend line.
Chainlink notched a new record high at $25.84 on Monday and staged a deep technical correction all the way down to $20. However, buyers didn’t have a difficult time retaking control of the price mid-week and LINK was last seen trading near $23.
Ascending trend line continues to limit losses
LINK trades above the three-week-old ascending trend line, which was last tested during the pullback earlier in the week. As long as this line remains intact, Chainlink could try to renew its all-time high above $26. However, $25 area, where LINK closed following Monday’s upsurge, is likely to act as a near-term hurdle.
Meanwhile, the Relative Strength Index (RSI) indicator on the same chart stays near 60, suggesting that buyers don’t yet need to worry about LINK becoming technically overbought.
On the downside, the ascending trend line forms the initial support at $22. Moreover, IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model confirms this level as significant support with investors having purchased more than 12 million LINK there.
If sellers manage to drag the price below $22, Chainlink could extend its slide toward $20 psychological level, at which this week’s selloff ended.