Chainlink (LINK) has emerged as a frontrunner in the altcoin market recovery following the East Asian crisis, indicating signs of a bullish turnaround.
The key support level at $13 has sparked optimism for a potential rally beyond $20, despite the sideways trading and the looming threat of a death cross.
As the cryptocurrency market gradually recovers from the bearish impact of the East Asian crisis, altcoins are displaying signs of a resurgence. Among these coins, Chainlink (LINK) is leading the charge, with its price action suggesting a high likelihood of a bull run. This is evident from its ability to bounce back from crucial support levels.
For the third time, the $13 support level has acted as a buffer for a bullish turnaround, hinting at the possibility of a more pronounced recovery. This development has left investors and traders speculating whether this rally will propel Chainlink’s price beyond the $20 threshold.
Chainlink’s Price Performance: Struggling Sideways and the Potential Death Cross
On the daily chart, LINK’s price action has been moving sideways, struggling to maintain bullish momentum. The cryptocurrency has repeatedly dipped to the critical support level of $13, while a potential death cross looms over the chart due to the 50-day Exponential Moving Average (EMA) showing a downward trend.
The recent 40% decline to the $13 level has caused LINK to fall below the 200-day EMA. However, the coin has regained bullish momentum, resulting in an impressive 18% surge over the past five days.
This recovery rally has formed a V-shaped reversal, enabling LINK to reclaim the psychological level of $15. Currently, the LINK price is trading at $15.475, with a daily movement of 2.49%, indicating an increase in underlying bullish sentiment.
Will the Price Surpass $20?
As the market continues to recover and the recovery rally gains momentum, the LINK price presents an opportunity for investors to buy the dip. If Chainlink’s price trend maintains its positive trajectory, the altcoin could surpass the $20 threshold, with some optimistic projections even suggesting a potential rise to $30.
However, investors should also be cautious of potential risks. A reversal from the $16 level could trigger another drop to the $13 mark. Furthermore, a decline below $13 could prove detrimental for Chainlink, potentially leading to a 30% decrease to $8.50.
