Chainlink (LINK) remained stable above the $11.50 support and started a fresh increase, similar to bitcoin. The price is now trading above $13.50 and it could continue to rise above $15.00.
- Chainlink token price regained traction and climbed above $13.00 against the US dollar.
- The price is now trading above $13.50 and settled above the 100 simple moving average (4-hours).
- There is a key bullish trend line forming with support near $13.50 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
- The price is likely to continue higher above the $14.50 and $15.00 resistance levels.
Chainlink (LINK) Is Gaining Momentum
This past week, we saw a sharp downside correction in bitcoin, Ethereum, ripple, bitcoin cash, chainlink (LINK), and other major altcoins. LINK price dived from well above $15.50 and declined below the $13.50 support.
There was also a break below the $12.40 support and the 100 simple moving average (4-hours). Finally, the bulls were able to protect the $11.50 support zone. A low was formed near $11.29 and the price started a fresh increase above $12.00.
There was a break above the $13.00 resistance and the 100 simple moving average (4-hours). LINK price surpassed the 50% Fib retracement level of the downside correction from the $16.43 swing high to $11.29 swing low.
Source: LINKUSD on TradingView.com
The price is now trading nicely above the $13.85 resistance. There is also a key bullish trend line forming with support near $13.50 on the 4-hours chart of the LINK/USD pair. On the upside, the bulls are likely to face hurdles near the $14.50 level.
The 61.8% Fib retracement level of the downside correction from the $16.43 swing high to $11.29 swing low is also at $14.50 to prevent gains. A clear break above $14.50 could open the doors for more gains above $15.00 and $15.20.
Downsides Limited?
An initial support for chainlink’s price is near the $13.65 and $13.55 levels. The first major support is forming near the $13.50 level and the trend line.
If there is a downside break and close below the $13.50 support zone, there is a risk of a bearish move towards the $13.00 support level or even towards the $12.50 level.
Technical Indicators
4-hours MACD – The MACD for LINK/USD is now losing momentum in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for LINK/USD is currently well above the 50 level.
Major Support Levels – $13.65, $13.50 and $13.00.
Major Resistance Levels – $14.50, $15.00 and $15.50.