Chainlink has impressed and left many in the industry mouths agape with the marvelous shows of strength since the week started. As a matter of fact, the trading in August has broken numerous barriers with the upward momentum relatively unstoppable.
The surge to new all-time highs has left other major altcoins in the dust. LINK/USD seems to be on the track to bring down the seller congestion at $20.00. Meanwhile, Chainlink is teetering at $16.72 after a minor retreat from the new highs traded at $17.00.
A bounce from the short term support at $16.00 suggests that bulls are in control and likely to stay in the cockpit longer. Indicators signal that LINK has the potential to climb above the new highs and even brush shoulders with the psychological resistance at $20.00. Buyers need to push the throttle forward as they take advantage of both the prime technical and fundamental levels.
The RSI is currently holding in the overbought region. This means that LINK is currently overbought and could give way to a reversal. On the other hand, the Elliot Wave Oscillator continues to print the bullish session commenced on Wednesday.
Consequently, LINK could ignore the overbought condition due to the fact that it is in the middle a rally that is both technically and fundamentally ready. Besides, support at $16.00 is key to continuing the price action above $17.00 and towards $20.00.