Analysis

Chainlink (LINK) Bulls Facing Uphill Task: Here’s Why $11 Holds The Key

Chainlink (LINK) started a strong upward move from the $ 7.32 low against the US Dollar. The bulls are now facing a strong resistance near $ 10.50, $ 11.00, and the 100 SMA (H4).

  • Chainlink token price gained nicely above the $ 8.50 and $ 9.00 resistance levels against the US dollar.
  • The price is now facing hurdles near the $ 10.50 resistance and the 100 simple moving average (4-hours).
  • There is a key bullish flag forming with resistance near $ 10.45 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
  • The pair could either rally above $ 11.00 or it might trim all gains to drop back at $ 7.50.

Chainlink (LINK) is Facing Hurdles

This past week, we saw a sharp rise in chainlink (LINK) above the $ 8.50 and $ 9.00 resistance levels against the US Dollar. The price remained well bid after it settled above the $ 9.00 pivot level.

There was also a break above the 50% Fib retracement level of the key decline from the $ 13.30 swing high to $ 7.32 low. However, LINK price ran into a significant resistance at $ 11.00 and the 100 simple moving average (4-hours).

It seems like price is struggling to clear the last breakdown zone at $ 10.50 and $ 11.00. The 61.8% Fib retracement level of the key decline from the $ 13.30 swing high to $ 7.32 low is also acting as a strong resistance for the bulls.

Chainlink (LINK) Price

LINK price trades below $ 10.00. Source: TradingView.com

The price is currently correcting lower (similar to bitcoin and ethereum) and trading below $ 10.00. There is a key bullish flag forming with resistance near $ 10.45 on the 4-hours chart of the LINK/USD pair.

If there is an upside break above the channel resistance and $ 10.50, there are high chances of a sharp increase above the $ 11.00 resistance zone. In the stated case, the price could rally towards the $ 12.50 and $ 13.20 resistance levels.

Fresh Decline?

If chainlink’s price fails to clear the $ 10.50 resistance and stays below the 100 simple moving average (4-hours), there is a risk of a sharp decline.

An initial support on the downside is near the channel lower trend line at $ 9.40 level. The main support is near the $ 9.00 level, below which there are real chances of a drop towards the $ 7.50 level in the near term.

Technical Indicators

4-hours MACD – The MACD for LINK/USD is now gaining pace in the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI for LINK/USD is now well below the 50 level.

Major Support Levels – $ 9.40, $ 9.00 and $ 8.50.

Major Resistance Levels – $ 10.40, $ 10.50 and $ 11.00.

Let’s block ads! (Why?)

Analysis – NewsBTC

Leave a Reply

Your email address will not be published. Required fields are marked *

eight + two =