Why Chainlink Looks To Have Found Support, Could Head Higher

Chainlink (CRYPTO: LINK) is a crypto that considers itself as the industry standard oracle network, and the company is trying to expand the capabilities of smart contracts.

“Chainlink’s decentralized oracle network provides reliable, tamper-proof inputs and outputs for complex smart contracts on any blockchain,” according to the crypto’s website.

Chainlink recently saw a fall in price along with the rest of the crypto market and is looking to bounce back.

Below is a technical analysis of Chainlink’s chart.

Chainlink Daily Chart Analysis

• Chainlink took a deep dive along with the rest of the crypto market last week and lost much of the gains it acquired throughout the past year.
• The crypto is trading below the 50-day moving average (green), but above the 200-day moving average (blue). This indicates the crypto is likely facing a period of consolidation.
• The 50-day moving average is somewhere the crypto may find resistance, while the 200-day moving average is somewhere Chainlink may find support.

Key Chainlink Levels To Watch

• Chainlink previously saw resistance near the $35 level, as this was where sellers have been able to push the price back lower.
• As the price has falen back below the $35 level, it may now hold as a resistance level again if the price is able to reach the level.
• Even after the large dropoff, Chainlink is still building higher lows. It may now see a slower climb higher along the shallow sloped trendline.

What’s Next For Chainlink?

Bullish technical traders would like to see the crypto form higher lows along the trendline and continue to stay above the trendline. Bulls should hold control as long as the price is able to stay above the trendline.

Bearish technical traders would like to see the crypto fall further and break below the trendline. A break below the trendline could cause the stock to see a further dropoff.