Chainlink (LINK) secured supports at $17.4 and has tested the mark several times while searching for buyers. Though the alt price broke well under this mark amid December 4 sell-off, LINK buyers had maintained the crucial level pretty well.
For now, Momentum switched to favor bullishness as the token flipped the $20.8 zone into a support floor. Meanwhile, the $23 – $24 range might halt Chainlink upside action in the upcoming trading sessions.
Keep in mind that LINK witnessed two bounces off $23 since October. After that, bulls will encounter obstacles around the $28 value area. Though flipping $20.8 encouraged LINK enthusiasts, a climb past $23 in the coming day is essential for lucrative upward actions.
A rejection at $23 plus a higher low formation would also suggest continued downswings for LINK. Nevertheless, bulls should prevent a downward move towards the support at $20.8 from this rejection.
If this case emerges, Chainlink will authorize $23 as its range highs, while the range low would stand at $17.4. Therefore, bullish market players can expect some sideways actions at or under $23, accompanied by an upward move from this price pocket.
Reasoning
Chainlink momentum had switched bullish at low time frames some days ago. Now, the high timeframes appear to confirm the momentum change is a lasting one. The Relative Strength Index rose past the 50 neutral and retested the mark when LINK traded at $20 per token.
The OBV overcame its downward trends from November on the twelve-hour chart and has printed multiple higher lows after a descending trend-line break. Also, the DMI (Directional Momentum Index) suggested a somewhat massive bullish trend.
Chainlink and most altcoins saw upward movements as Bitcoin crossed $50,000. However, the leading crypto failed to stabilize past the mark, trading around $49,803 at this publication. Maintaining downtrends can translate to weakness in LINK price.
Final Thoughts
LINK had the possibility of establishing a range high at $23, and bullishness in Bitcoin might see Chainlink surging rapidly past $23.85. Nevertheless, a candle close under $20.8 would confirm another drop towards the $17.4 low. On the other side, a decisive move past $23 would confirm massive buying actions.
