Analysis

Charted: Chainlink (LINK) Near Crucial Juncture, $10.50 Holds The Key

Chainlink (LINK) started a downside correction from the $ 11.80 zone against the US Dollar. The price is now trading near a major breakdown support at $ 10.60 and $ 10.50.

  • Chainlink token price is correcting gains from well above the $ 11.50 level against the US dollar.
  • The price is now testing the $ 10.60 support and it is well above the 100 simple moving average (4-hours).
  • There is a short-term declining channel or a bullish flag forming with resistance near $ 10.95 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
  • The pair could rally if there is a clear break above the $ 10.95 and $ 11.00 resistance levels.

Chainlink (LINK) Price Rallies 8%

In the past few days, there was a decent rise in chainlink (LINK) above the $ 10.00 resistance level. The price even broke the $ 10.50 and $ 11.00 resistance levels.

Finally, there was a break above the $ 11.50 resistance and the price settled well above the 100 simple moving average (4-hours). A high was formed near $ 11.82 and the price recently started a downside correction.

There was a break below the $ 11.20 and $ 11.00 support levels. The price even declined below the 50% Fib retracement level of the upward move from the $ 10.07 low to $ 11.82 high. More importantly, it seems like there is a short-term declining channel or a bullish flag forming with resistance near $ 10.95 on the 4-hours chart of the LINK/USD pair.

Chainlink (LINK) Price

Source: LINKUSD on TradingView.com

On the downside, there is a crucial support near $ 10.60 and $ 10.50. The 61.8% Fib retracement level of the upward move from the $ 10.07 low to $ 11.82 high is also near $ 10.70.

On the upside, the bulls are facing a major hurdle near $ 10.95 and $ 11.00. A clear break above the $ 11.00 resistance level could open the doors for a steady increase in the coming sessions. The next immediate resistance is near the $ 11.50 level, above which the price could rally towards the $ 12.00 level.

Downside Break?

If chainlink’s price fails to clear the $ 11.00 resistance, it could move down further. A downside break below the $ 10.60 and $ 10.50 support levels might increase the risk of a sharp decline.

The next major support is near the $ 10.00 level, below which the price might test the 100 simple moving average (4-hours) or even $ 9.60.

Technical Indicators

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

4-hours RSI (Relative Strength Index) – The RSI for LINK/USD is now rising and it is just above the 50 level.

Major Support Levels – $ 10.60, $ 10.50 and $ 10.00.

Major Resistance Levels – $ 10.95, $ 11.00 and $ 11.50.

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Analysis – NewsBTC

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