ChainLink (LINK) has been moving upwards since April 18. It proceeded to reach a new all-time high (ATH) price on May 5.
LINK has nearly reached an important Fib resistance level which could cause a short-term rejection. Despite this, the trend is considered bullish as long as the token is trading above the $42.70 support area.
New LINK all-time high
LINK has been moving upwards since April 18. On April 27, it managed to break out above the previous resistance area of $35 and validated it as support a few days later (green arrow).
The rate of increase accelerated on May 4, and LINK reached a new all-time high price of $51.20 the next day.
The next closest resistance areas are found at $53.30 and $67.80. These are the 1.61 and 2.61 external Fib retracements of the most recent drop.
Cryptocurrency trader @Altcoinsherpa outlined a LINK chart, which shows a potential double top near the $42 resistance area. Since the tweet, the price has moved above this level, proceeding to reach a new all-time high.
The shorter-term six-hour chart shows a breakout from a descending resistance line which led to the current all-time high price.
Neither the MACD nor RSI show any signs of weakness, despite the latter being overbought.
If LINK retraces in the short-term, the $42.70 area is expected to act as support. This is the previous all-time high level. The trend is considered bullish as long as the token is trading above this level.
Similarly to the USD pair, LINK/BTC has broken out from a descending resistance line. However, it is nowhere close to reaching a new all-time high. In fact, it is just approaching the 0.5-0.618 Fib resistance levels at 102,000-118,000 satoshis.
Despite technical indicators being bullish, a rejection could occur at this level, prior to trend continuation. If so, the closest support area is found at 70,000 satoshis.
To conclude, LINK is expected to continue increasing towards a new all-time high. While a short-term rejection could occur, the token is not likely to decrease below the $42.70 area.