Chainlink’s LINK price is holding the $7.30 support zone. The price could start a fresh increase if it clears the $7.50 resistance zone.
- Chainlink token price is showing positive signs above USD 7.30 against the US Dollar.
- The price is trading above the $7.40 level and the 100 simple moving average (4 hours).
- A major bearish channel is forming with resistance close to $7.50 on the LINK/USD pair’s 4-hour chart (data source from Kraken).
- The price could gain bullish momentum above the $7.50 resistance zone.
Chainlink (LINK) Increase price Eyes Fresh
After a strong increase, the LINK price faced sellers near the $7.90 zone against the US dollar. A high was formed near $7.91 and the price began a downside correction, unlike Bitcoin and Ethereum.
There was movement below the $7.60 and $7.50 levels. The price fell below the 50% Fib retracement level of the upward move from the $6,932 swing low to the $7,915 high. The price also spiked below the $7.40 level. However, the bulls are active near the $7.30 support.
LINK is trading above the 61.8% Fib retracement level of the upward move from the $6,932 swing low to the $7,915 high. It is also above the $7.40 level and the 100 simple moving average (4 hours).
Source: LINKUSD at TradingView.com
It is now facing resistance near the $7.50 level. A major bearish channel is also forming with resistance near $7.50 on the LINK/USD pair’s 4-hour chart. The first major resistance is near the $7,685 zone. A clear break above USD 7,685 could potentially trigger a fresh increase towards the USD 7.90 and USD 8.00 levels. The next major resistance is near the $8.20 level, above which the price could reach $8.50 again.
Lose more?
If the price of Chainlink fails to break above the $7.50 resistance level, there could be a downside extension. The first support on the downside is near the $7.30 level.
The next key support is near the $7.15 level, below which the price might test the $7.00 level. Any more losses could lead the price to the $6.85 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 near the 50 level.
Major Support Levels – $7.30 and $7.15.
Main resistance levels – $7.50 and $7.685.