Chainlink (LINK) emerges as a frontrunner in the altcoin recovery following the East Asian crisis, displaying signs of a bullish turnaround.
There is a sense of optimism as key support at $13 sparks hope for a potential rally beyond $20, despite the current sideways trading and the looming threat of a death cross.
The recovery rally has given an 18% boost to the LINK price, with the aim of reclaiming the $20 mark. However, caution is advised due to the risks of a potential reversal.
As the cryptocurrency market starts to bounce back from the bearish impact of the East Asian crisis, altcoins are showing signs of making a comeback. One of the leading coins in this resurgence is Chainlink (LINK), which has displayed promising price action that indicates the possibility of a bull run. This is evident in the recent bounce back from crucial support levels.
For the third time, the $13 support level has acted as a cushion for a bullish turnaround, teasing the potential for a more significant recovery. This development has left investors and traders speculating whether this turnaround rally could push Chainlink’s price beyond $20.
When looking at the daily chart, LINK’s price action has been trading sideways and struggling to maintain bullish momentum. The cryptocurrency has tested the crucial support level of $13 multiple times, while the chart faces the looming threat of a death cross as the 50-day Exponential Moving Average (EMA) shows a downward trend.
The recent 40% drop to the $13 level has pushed LINK below the 200-day EMA. However, the coin has found renewed bullish momentum, resulting in an impressive 18% jump over the past five days.
This recovery rally has formed a V-shaped reversal, enabling LINK to reclaim the psychological mark of $15. Currently, the LINK price is trading at $15.475 with a 2.49% intraday increase, indicating an underlying bullish sentiment.
The question now is whether the price will surpass $20. As the market recovers and the recovery rally gains momentum, there is an opportunity for investors to buy the dip in LINK. If the price trend of Chainlink continues to be positive, the altcoin could exceed the $20 mark, with some optimistic projections suggesting a potential rise to $30.
However, investors should also be cautious of the potential risks. A reversal from the $16 level could result in another drop to $13. Furthermore, if the price falls below $13, it could be detrimental for Chainlink, potentially leading to a 30% decline to $8.50.
