Chainlink’s LINK price is in the $5.75 support zone. The price could start a fresh increase if it crosses the USD 6.25 resistance zone.
- Chainlink token price is showing positive signs above USD 6.0 against the US dollar.
- The price is trading above the USD 6.05 level and the 100 simple moving average (4 hours).
- A major bearish trendline is forming with resistance near USD 6.10 on the LINK/USD pair’s 4-hour chart (data source from Kraken).
- The price could gain bullish momentum above the USD 6.25 resistance zone.
Chainlink (LINK) Price Eyes Fresh Recovery
After a major decline, the LINK price found support near the USD 5.75 zone against the US Dollar. A low was formed near USD 5.74 and the price is now attempting a recovery wave just like Bitcoin and Ethereum.
There was a decent move above the USD 5.85 and USD 6.00 levels. LINK is now trading above the USD 6.05 level and the 100 simple moving average (4 hours). However, there are many hurdles on the upside starting at USD 6.10. In addition, a major bearish trendline is forming with resistance near USD 6.10 on the LINK/USD pair’s 4-hour chart.
The current price action suggests that the price is struggling near the trendline and USD 6.10. The first major resistance is near the USD 6.25 zone. It is close to the 23.6% Fib retracement level of the downward move from the $7.91 swing high to the $5.74 low.
Source: LINKUSD at TradingView.com
A clear break above USD 6.25 could potentially trigger a fresh increase towards the USD 6.65 and USD 6.80 levels. The next major resistance is near the USD 7.10 level, above which the price could revisit USD 7.50.
Another fall in losses?
If the price of Chainlink fails to climb above the USD 6.25 resistance level, it could be in for a downside extension. The initial downside support is near the USD 6.00 level.
The next major support is near the USD 5.75 level, below which the price might test the USD 5.60 level. Any further losses could lead the price towards the USD 5.35 level in the near term.
Technical indicators
4am MACD – The MACD for LINK/USD is losing momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for LINK/USD is now above the 50 level.
Key Support Levels – USD 6.00 and USD 5.75.
Key Resistance Levels – USD 6.25 and USD 6.80.