Chainlink (LINK) Bulls Facing Uphill Task: Here’s Why $11 Holds The Key
Chainlink (LINK) started a strong upward move from the $7.32 low against the US Dollar. The bulls are now facing a strong resistance near $10.50, $11.00, and the 100 SMA (H4).
- Chainlink token price gained nicely above the $8.50 and $9.00 resistance levels against the US dollar.
- The price is now facing hurdles near the $10.50 resistance and the 100 simple moving average (4-hours).
- There is a key bullish flag forming with resistance near $10.45 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
- The pair could either rally above $11.00 or it might trim all gains to drop back at $7.50.
Chainlink (LINK) is Facing Hurdles
This past week, we saw a sharp rise in chainlink (LINK) above the $8.50 and $9.00 resistance levels against the US Dollar. The price remained well bid after it settled above the $9.00 pivot level.
There was also a break above the 50% Fib retracement level of the key decline from the $13.30 swing high to $7.32 low. However, LINK price ran into a significant resistance at $11.00 and the 100 simple moving average (4-hours).
It seems like price is struggling to clear the last breakdown zone at $10.50 and $11.00. The 61.8% Fib retracement level of the key decline from the $13.30 swing high to $7.32 low is also acting as a strong resistance for the bulls.
LINK price trades below $10.00. Source: TradingView.com
The price is currently correcting lower (similar to bitcoin and ethereum) and trading below $10.00. There is a key bullish flag forming with resistance near $10.45 on the 4-hours chart of the LINK/USD pair.
If there is an upside break above the channel resistance and $10.50, there are high chances of a sharp increase above the $11.00 resistance zone. In the stated case, the price could rally towards the $12.50 and $13.20 resistance levels.
If chainlink’s price fails to clear the $10.50 resistance and stays below the 100 simple moving average (4-hours), there is a risk of a sharp decline.
An initial support on the downside is near the channel lower trend line at $9.40 level. The main support is near the $9.00 level, below which there are real chances of a drop towards the $7.50 level in the near term.
4-hours MACD – The MACD for LINK/USD is now gaining pace in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for LINK/USD is now well below the 50 level.
Major Support Levels – $9.40, $9.00 and $8.50.
Major Resistance Levels – $10.40, $10.50 and $11.00.