Charted: Chainlink (LINK) Correcting Gains, Why Dips Remain Attractive
Chainlink (LINK) rallied towards the $26.00 level before correcting lower, similar to bitcoin and Ethereum. The price is now approaching a major support zone at $21.50.
- Chainlink token price gained pace after it broke $22.00 and it traded towards $26.00 against the US dollar.
- The price is correcting gains from $25.89 and it is well above the 100 simple moving average (4-hours).
- There is a major bullish trend line forming with support near $21.50 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
- The price is likely to find a strong buying interest near the $21.50 and $21.20 levels.
Chainlink (LINK) is Correcting Gains
After a successful break above $22.00, chainlink (LINK) gained bullish momentum above $24.00. The bulls gained strength, resulting in a push above the $25.00 resistance zone.
A new 2021 high was formed near $25.89 and the price settled well above the 100 simple moving average (4-hours). It is currently correcting lower and trading below the $25.00 level. There was a break below the 23.6% Fib retracement level of the recent increase from the $17.19 swing low to $25.89 high.
On the downside, there are many important supports forming near $21.50. There is also a major bullish trend line forming with support near $21.50 on the 4-hours chart of the LINK/USD pair.
Source: LINKUSD on TradingView.com
The trend line is close to the 50% Fib retracement level of the recent increase from the $17.19 swing low to $25.89 high. As long as link price is above the $21.50 level, there are chances of a strong increase in the near term. An immediate resistance is near the $24.00 level.
The first major resistance is near $25.00, above which the price is likely to accelerate higher towards the $26.00 and $26.50 levels in the near term.
More Losses?
If chainlink’s price stay above the $21.50 support, there is a risk of a larger decline. The next major support below $21.50 is near the $20.50 level.
Any more losses below the $20.50 level may possibly put the $20.00 support at risk in the near term. In the stated case, the price could revisit the $18.50 support.
Technical Indicators
4-hours MACD – The MACD for LINK/USD is gaining momentum in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for LINK/USD is currently just below the 50 level.
Major Support Levels – $21.50, $21.20 and $20.50.
Major Resistance Levels – $24.00, $25.00 and $26.00.
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow
