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  • Chainlink price has rallied approximately 6.5% over the last 24 hours to trade above $27.
  • LINK has to overcome the 200-day SMA to confirm a clear bullish breakout.
  • The short-term bullish price prediction is bullish as bulls focus on undoing Tuesday’s losses.

The Chainlink price violated the May 27 range high at $35.75 on September 06 slicing through the $36 and $37 psychological levels to reach a four-month high at $37.18. However, this bullish steam quickly cooled off as LINK closed the day below $35 on Monday September 06 at $34.95.

During the Tuesday crypto market flash crash, the Chainlink shed approximately 20% of its value from $34.95 opening price on Tuesday to close the day at $28.65. At some point, LINK dropped 33% to trade just above $23. Wednesday session saw bulls struggle to push the price past the $28 resistance level currently embraced by the 200-day Simple Moving Average (SMA)  and closed the day in the red just above $27.

Chainlink is currently trading in the green at $27.66 after have risen approximately 6.5% over the last 24 hours. Buyers appear to be in control now.

Chainlink Price Must Break Above The 200 SMA For A Bullish Breakout

The short-term Chainlink price prediction is bullish as bulls focus on regaining the Tuesday losses. Note that overcoming the $28 resistance level is crucial to LINK movement upwards. This level coincides with the 200-day SMA which makes it a significant hurdle to overcome. Note that a clear bullish breakout will be realised if LINK closes the day above this level.

If this happens, the bullish bias will be validated and Chainlink may rise to tag the four-month high above $37. However, LINK will have to overcome the $31.05 and $32.50 major resistance levels before moving higher.

LINK/USD Daily Chart

Chainlink Price Daily Chart
Chainlink Price Daily Chart. Source: Tradingview

This bullish outlook is validated by the position of the Moving Average Convergence Divergence (MACD) indicator above the zero line in the positive zone. Also, the Relative Strength Index (RSI) indicator has started moving up away from the midline indicating that the bulls have started taking control of the Chainlink price.

On the flipside if Chainlink closes the day below the immediate support at $27.05, the asset might drop further to tag the 50-day SMA and the 10-day SMA at $25.15 and $22.07 respectively. This bearish outlook is accentuated by the MACD indicator which sent a call to sell signal yesterday when the MACD line (blue) crossed below the signal line (orange) indicating that the bears have not given of pulling LINK further down.

Where To Buy LINK Cheap Now

If you want to trade the Chainlink this week, you can do so on several crypto trading platforms such as eToro. eToro is one of the trusted exchange platforms in the crypto space. eToro supports copy trading, which allows new traders to learn from market experts. eToro also charges low trading fees and commissions.

Looking to buy or trade crypto now? Invest at eToro!

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