Chainlink Struggles To Regain Bids, but There Are Bullish Hints

Chainlink (LINK) is looking for bids around the $21.70 level following a resurge in the buying force ahead of Christmas day across the board.

The cryptocurrency wants to test the 200-period simple moving average at the H4 chart, where it converges with the dynamic resistance offered around the psychological area of $22.

A demand zone has been established around the $18 neighborhood, where buyers had been active in avoiding a downwards extension of the bearish bias. As a result, the altcoin developed an impulsive structure that aimed to consolidate below $16.

Technicals Are Still on the Negative Waters

Now, with the odds in place for a recovery above the 200 SMA, LINK could be targeting levels above the $22 zone that could be seeking a resistance zone of $25 in a first degree, followed by $27 in a second degree.

The crypto then should break the stagnation zone where it had been trapped since the beginning of the month, capped by the $23 level. However, bears are not strong enough to crack lower and strengthen the bearish perspective ahead of the Christmas rally for the mid-term.

Bullish Force Ahead?

Still, if Chainlink pierces below the $18 level, doors will open for a decline towards the $15 zone as the first tough nut to crack to the downside. When the altcoin manages to break below the lows from December 4, eyes will be on the $14.50 area.

It’s worth noting that the RSI indicator at the H4 chart is inside the overbought territory, suggesting that the DeFi altcoin could extend the bearish bias further and eventually enter into the rangebound zone that was mentioned above.

Also, it coincides with the fact that the 200 SMA could act as a dynamic resistance in the near term, although if it gives up, buyers could resurge for taking the crypto to develop an impulsive structure towards new highs.