Reason to trust
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
Chainlink (LINK) recovered sharply from the $7.35 support zone against the US Dollar. The recent rally is now facing a strong resistance near the $10.00 zone and the 100 SMA (H4).
- Chainlink token price started a strong upward move from the $7.32 low against the US dollar.
- The price is now facing hurdles near the $10.00 resistance and the 100 simple moving average (4-hours).
- There was a break above a crucial bearish trend line with resistance near $9.00 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
- The pair is likely to reverse gains if there is no upside break above $10.00 and $10.50.
Chainlink (LINK) is Recovering
In the past few days, there was a steady decline in chainlink (LINK) below the $10.00 support zone against the US Dollar. The price even broke the $8.50 support level and settled well below the 100 simple moving average (4-hours).
Today, bitcoin and Ethereum started a steady recovery above $10,550 and $340 respectively. LINK price also recovered sharply from the $7.32 low and it climbed nicely above the $8.50 and $9.00 resistance levels.
There was also a break above a crucial bearish trend line with resistance near $9.00 on the 4-hours chart of the LINK/USD pair. The pair broke the 23.6% Fib retracement level of the downward move from the $13.31 high to $7.32 low.
LINK price rallies to $10.00. Source: TradingView.com
However, the price is now facing a couple of important hurdles near $10.00. The 50% Fib retracement level of the downward move from the $13.31 high to $7.32 low seems to be acting as a strong resistance.
The previous support near $10.50 and $11.00 are now likely to act as a major resistance along with the 100 simple moving average (4-hours). A successful daily close above the $10.00 resistance and a follow up move above $11.00 is must for upside continuation in the near term.
Reversal From $10?
If chainlink’s price fails to clear the $10.00 resistance and stays below the 100 simple moving average (4-hours), there is a risk of a fresh decline in the near term.
An initial support on the downside is near the $9.00 level. The main support is near the $8.50 level, below which the bears are likely to aim a new monthly low below the $7.300 level in the coming days.
Technical Indicators
4-hours MACD – The MACD for LINK/USD is now gaining pace in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for LINK/USD spiked above the 50 level.
Major Support Levels – $9.00, $8.80 and $8.50.
Major Resistance Levels – $10.00, $10.50 and $11.00.
