Chainlink (LINK) Rallies 20%, But Price Runs Into Crucial Resistance
Chainlink (LINK) is up around 20% from the $9.20 swing low against the US Dollar. It broke the $12.00 resistance, but now facing a major resistance near the $13.50 level.
- Chainlink token price started a strong recovery wave from the $9.21 monthly low against the US dollar.
- It gained pace above the $12.00 resistance, but is still below the 100 simple moving average (4-hours).
- There is a crucial bearish trend line forming with resistance near $13.00 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
- The pair must break $13.00 and $13.50 to continue higher in the near term.
Chainlink (LINK) Rally is Facing Hurdles
This past week, we saw a sharp decline in bitcoin, Ethereum, ripple, and chainlink (LINK) against the US Dollar. LINK broke many supports near $15.00 and the 100 simple moving average (4-hours) to move into a bearish zone.
The decline gained pace below the $13.50 and $12.50 support levels. It even broke the $10.00 level and traded to a new monthly low at $9.21. Recently, the bulls came into action and the price pumped above the $10.00 pivot level.
There was a break above the 23.6% Fib retracement level of the downward move from the $17.74 high to $9.21 low. Chainlink rallied 20% and it even broke the $13.00 level.
LINK price above $13.000. Source: TradingView.com
However, the price is now facing a major hurdle near the $13.00 and $13.50 levels. There is also a crucial bearish trend line forming with resistance near $13.00 on the 4-hours chart of the LINK/USD pair. The trend line coincides with the 50% Fib retracement level of the downward move from the $17.74 high to $9.21 low.
It seems like the bulls might struggle to clear the trend line and the $13.50 resistance. If they succeed, chainlink (LINK) might rise steadily towards the $15.50 and $15.50 levels in the near term.
Dips Likely to be Supported
On the downside, chainlink’s price is likely to find strong bids near the $11.50 and $11.20 levels. The next major support is near the $11.05 level.
A downside break below the $11.00 support level could push the price back into a negative zone. In the stated case, the price could continue to decline towards the $10.00 level.
4-hours MACD – The MACD for LINK/USD is slowly losing pace in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for LINK/USD is still below the 50 level.
Major Support Levels – $11.50, $11.20 and $11.05.
Major Resistance Levels – $13.00, $13.20 and $13.50.