Chainlink Price News: LINK Could Rise to $20 After Strong Breakout

In the past week, LINK has also seen gains of 20.7% and has managed to trim its annual losses to just 26%.

This rally seems to have been triggered by an improvement in market sentiment as the Fear and Greed Index has recovered from a record low of 15 on April 8, reaching Extreme Fear levels, to 52 as of today. At this level, sentiment is categorized as neutral.

This radical shift seems to have been the result of President Donald Trump’s decision to dial down his plans to impose high tariffs on imported goods from a significant number of countries including China.

Recent comments from White House officials and the President himself seem to have reassured market participants that they will handle this policy change with more caution than initially seemed.

LINK Needs to Clear the $16 Level

Looking at the daily chart, the picture is quite bullish for LINK as the price broke above the 21-day exponential moving average (EMA) a few days ago while the move consolidated in the past couple of days with some strong upside volume.

This bullish breakout occurred within a high-value area where trading volumes have been at their peak throughout the year. This emphasizes its relevance and how meaningful this could be for the token’s mid-term outlook.

Meanwhile, the Relative Strength Index (RSI) has been trending higher and currently stands nearly 29% above the signal line. This stretch means that positive momentum is accelerating.

In addition, the RSI is standing at the highest level it has reached since January 21. If it keeps moving higher, it will soon reach levels not seen since December last year. Moreover, the MACD’s histogram has been on an uptrend for nearly 12 days.

LINK has reached a critical point today from which it can pull back without necessarily endangering the rally as the 21-day EMA could now act as support.

However, if the price breaks above the $16 level in the next few days, this could result in a huge rally that could propel LINK to almost $21 as bulls will reach an area of low volume where they will face much less opposition from sellers.

Although macro conditions have not necessarily changed for good and multiple negative catalysts could derail this apparent trend reversal, all technical factors are favoring a bullish short-term outlook for LINK.

Next Key Support at $14.60

Now heading to a lower time frame, we can see how LINK’s uptrend has broken after the token made a vertical climb to its current levels.

Most technical indicators are flashing sell signals at this point, including the RSI, which has made a bearish crossover below the signal line while the MACD’s histogram has turned red for the first time in the past 24 hours.

For now, the 21-hour EMA has held steady. This is the key support to watch in this lower time frame. A break below this level would confirm the beginning of a trend reversal. This is also an area of high volume according to LINK’s volume profile, which increases its relevance as a pivot.

Either the price bounces off this level strongly, which would indicate the rally’s continuation, or it will break below and signal that the market is ready for another big dump.