Chainlink’s LINK price recovered above the USD 6.50 resistance. The price is now correcting gains but could find bids near $6.40 and start a new rise.
- The Chainlink price is showing positive signs above $6.5 against the US dollar.
- The price is trading above the USD 6.50 level and the 100 simple moving average (4 hours).
- A connecting bullish trendline is forming with support near $6.40 on the 4-hour chart of the LINK/USD pair (Kraken data source).
- The price could rise again unless there is a close below the USD 6.40 support.
Chainlink (LINK) Price turns green
After a steady decline, LINK price found support near the $5.75 zone against the US dollar. A low was formed near $5.74 and the price recently started to rise again, just like Bitcoin and Ethereum.
The price recovered above the USD 6.00 and USD 6.20 resistance levels. The bulls were able to pump the price above the $6.50 level and the 100 simple moving average (4-hours). Finally, the bears appeared near the $7.00 zone. A high is formed near USD 7.03 and the price is now correcting gains.
It traded below the 23.6% Fib retracement level of the upward move from the $5.74 swing low to the $7.03 high. LINK is still trading above the $6.50 level and the 100 simple moving average (4-hours). A connecting bullish trendline is also forming with support near $6.40 on the 4-hour chart of the LINK/USD pair. The trendline is near the 50% Fib retracement level of the upward move from the $5.74 swing low to the $7.03 high.
Source: LINKUSD on TradingView.com
If there is a new increase, the price could face resistance near USD 6.80. The first major resistance is near the $7.00 zone. A clear break above USD 7.00 could potentially trigger a steady rise towards the USD 7.25 and USD 7.32 levels. The next major resistance is near the USD 7.50 level, above which the price could reach USD 7.85 again.
Lose more?
If Chainlink price fails to rise above the USD 6.80 resistance level, a downside extension could occur. The initial downside support is near the $6.50 level.
The next major support is near the USD 6.40 level, below which the price could test the USD 5.90 level. Any further losses could push LINK towards the $5.75 level in the near term.
Technical indicators
4-hour MACD – The MACD for LINK/USD is losing momentum in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for LINK/USD is now above the 50 level.
Major support levels – USD 6.50 and USD 6.40.
Major resistance levels – $6.80 and $7.00.