Charted: Chainlink (LINK) Prints Bullish Break, But Facing Uphill Task Near $10
Chainlink (LINK) found a strong buying interest above the $8.50 support against the US Dollar. The price is now trading nicely above $9.20, but it must surpass $10.00 for more gains.
- Chainlink token price is showing positive signs above the $9.20 resistance against the US dollar.
- The price is now trading above the 100 simple moving average (4-hours), but facing hurdles near $9.80 and $10.00.
- There was a break above a major bearish trend line with resistance near $9.30 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 $9.80 and $10.00 resistance levels.
Chainlink (LINK) Price is Gaining Traction
After another drop, chainlink (LINK) found support near the key $8.50 level. The bears made two attempts to clear the $8.50 support, but they failed. A low is formed near the $8.36 level and the price started a fresh increase (similar to bitcoin).
There was a break above the $8.80 and $9.00 resistance levels to start the current increase. The price broke the 23.6% Fib retracement level of the downward move from the $11.29 high to $8.36 low.
More importantly, there was a break above a major bearish trend line with resistance near $9.30 on the 4-hours chart of the LINK/USD pair. The pair is now facing a tough resistance near the $9.65 level and the 100 simple moving average (4-hours).
LINK price trades above $9.20. Source: TradingView.com
The main resistance is near the $9.80 and $10.00 levels (the last key breakdown zone). It is close to the 50% Fib retracement level of the downward move from the $11.29 high to $8.36 low.
A successful close above the $9.80 and $10.00 resistance levels could open the doors for a sharp increase. In the stated case, the price is likely to rise steadily towards the $11.00 and $11.20 levels.
Downsides Supported?
If chainlink’s price starts a downside correction, it might find support near the broken trend line and $9.25. The first major support is near the $9.20 level.
The major support is now forming near the $9.00 level, below which the price is likely to revisit the $8.50 support. Any further losses could lead the price towards the $7.20 support zone.
Technical Indicators
4-hours MACD – The MACD for LINK/USD is now moving nicely in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for LINK/USD is now well above the 50 level.
Major Support Levels – $9.25, $9.20 and $9.00.
Major Resistance Levels – $9.65, $9.80 and $10.00.
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow