Chainlink (LINK) on the Move, Can the Rally Continue Toward $20?

• Chainlink has rallied 8%, now hovering around $16.
• LINK’s daily trading volume has soared over 150%.

The recent recovery of the crypto market has shifted the red trend to green. Major assets have made steady gains with Bitcoin (BTC) climbing into the $104.2K range, and Ethereum hovering at around the $2.3K range. Meanwhile, Chainlink (LINK) has registered an 8.51% increase.

Chainlink opened day trading at a bottom range of $14.83. Gradually, on the bullish heels, the asset climbed to a peak of $16.69, and chose to trade on the upside. At the time of writing, Chainlink trades at the $16.15 level with a market cap of $10.61 billion.  

Furthermore, the market observed a liquidation of $2.57 million worth of Chainlink during this period, as per Coinglass data. Notably, the asset’s daily trading volume has surged by over 150%, reaching $875 million.

Can Chainlink Hit New Highs?

Chainlink’s upside price correction has pushed the price higher to test the resistance at around $16.50. Assuming the asset’s extended gain, its price might head toward the $17 resistance range and kickstart the golden cross. 

A reversal of the ongoing price action could trigger it to fall toward the support zone at the $16 range. If the downside correction strengthens, Chainlink could break below the $15 support zone, inviting the death cross to emerge. 

The asset’s Moving Average Convergence Divergence (MACD) line has crossed over the signal line, indicating bullish crossover with the potential for further upward movement. In addition, the Chaikin Money Flow (CMF) indicator of LINK, found at 0.18, suggests that the capital is flowing into the asset with buying pressure in the market. 

LINK’s daily relative strength index (RSI), resting at 76.95, is in overbought territory, implying the asset’s potential pullback or consolidation. Besides, the Bull Bear Power (BBP) value of 1.671 signals the bullish strength and upward momentum.