This support area coincides with where the 50-day moving average currently lies
According to MagicPoopCannon, if this area holds, ChainLink could very well restest its recent all-time high of $20
Conversely, ChainLink losing this area as support could result in a drop to $7.40
The digital asset of ChainLink is once again battling to maintain its value above the $12 support area. The last 72 hours have been a rollercoaster ride for ChainLink (LINK) as it dropped from $16 to $11.30 due to the crypto market turmoil of the past few days. This was a 30% drop and LINK has rebounded a bit to the $12 support zone.
ChainLink Bouncing off its 50-Day Moving Average Could Result in a Retesut of $20
At the time of writing, ChainLink is trading at $12.16 and slightly above the 50-day moving average. According to crypto analyst MagicPoopCannon, ChainLink maintaining a value above this moving average will be crucial in determining whether it retests its August all-time high value of $20.
So, LINK is in a really important technical spot at the moment. If price continues lower, it will take out the bottom of the uptrend channel [below], as well as the 50 day [moving average], which would obviously be very negative…A hold of this area could open the door for a test of the all-time high.
Magic points out that LINK is also in an upward channel. This channel can be observed in the following screenshot of his analysis on Tradingview.
ChainLink Losing the 50-day Will Result in a Drop to $7.40
Magic also explores the opposite scenario of the 50-day moving average failing to hold and LINK deviating from the upward channel. If the latter scenario plays out, ChainLink (LINK) could very much be on a path to retest the $7.40 price level. The latter area was also ChainLink’s local bottom during the pullback from its all-time high of $20 set in mid-August.