The new week has kicked off with a wave of optimism across the crypto market, as most major altcoins are flashing green. Among them, Chainlink (LINK) has captured attention with a promising rebound above the $22 zone. The token is currently trading around $22.37, marking a 1.18% gain in the last 24 hours. This steady climb suggests that LINK could be preparing for a broader move if bullish pressure continues through the week.
Strong Support Around $22 as Bulls Regain Control
Over the past 24 hours, LINK has successfully held the $22.00 psychological level, which coincides closely with the 20 EMA (Exponential Moving Average) at $22.07. This convergence of support zones provides a solid base for potential upward momentum.
The 50 EMA at $22.15 and 100 EMA at $22.20 are also sitting just below the current price, forming a strong cluster of dynamic support. This alignment often signals an upcoming bullish breakout when sustained. The 200 EMA at $22.34 acts as immediate resistance, and a clear candle close above it could trigger a push toward $23.00 and possibly $23.50 in the short term.
In essence, LINK’s current positioning above multiple EMAs reflects market strength and growing confidence among short-term traders. The convergence of these moving averages suggests reduced selling pressure and potential price expansion in the sessions ahead.
Related article: LINK Climbs 58% in August – Will September Deliver $30 and Beyond?
RSI Signals Neutral Zone With Early Bullish Divergence
On the lower section of the chart, the RSI Divergence (5, 14) indicator sits at 8.94, suggesting a near-neutral to slightly oversold condition earlier, followed by a mild recovery. The recent upward slope in RSI shows that momentum is gradually shifting in favor of buyers after last week’s correction.
Although LINK hasn’t yet entered the overbought zone, this setup often precedes stronger rallies if accompanied by a sustained rise in volume. The RSI’s green divergence lines also hint at growing buying activity, which supports the bullish case for a short-term continuation.
Key Zones to Watch: Support and Resistance
In the event of a retracement, the next visible support lies around $21.82, followed by a secondary demand area near $21.00. Below that, the highlighted purple demand zone between $20.50 – $20.80 remains crucial. A break below this region could expose LINK to a deeper dip toward $19.55, a level not revisited since late September.
On the upside, immediate resistance is found near $22.80, and a breakout above $23.00 could open the way for a retest of $23.80 – $24.00. If momentum sustains, LINK could aim for $25.00 in the coming days, which would align with the broader bullish trend seen across the crypto market.
Market Context: A Green Start to the Week
The broader crypto market has opened this week on a positive note, with several leading altcoins posting moderate gains. Bitcoin’s stability above key support zones has also improved market sentiment, allowing tokens like LINK to rebound strongly.
If this green momentum persists across major pairs, LINK could benefit from renewed liquidity inflows and risk-on sentiment among traders. The ongoing alignment of EMAs further reinforces this scenario, hinting at the early stages of a bullish crossover.
