Chainlink Recovery Stalls But Not Likely Over

Chainlink’s LINK price recovered above the $6.50 resistance. The price is now correcting gains, but it might find bids near $6.40 and could start a fresh increase.

• Chainlink price is showing positive signs above $6.5 against the US dollar.
• The price is trading above the $6.50 level and the 100 simple moving average (4 hours).
• There is a connecting bullish trend line forming with support near $6.40 on the 4-hour chart of the LINK/USD pair (data source from Kraken).
• The price could restart its increase unless there is a close below the $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 a fresh increase, like Bitcoin and Ethereum.

The price recovered above the $6.00 and $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 $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). There is also a connecting bullish trend line forming with support near $6.40 on the 4-hour chart of the LINK/USD pair. The trend line 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 fresh increase, the price might face resistance near $6.80. The first major resistance is near the $7.00 zone. A clear break above $7.00 may possibly start a steady increase toward the $7.25 and $7.32 levels. The next major resistance is near the $7.50 level, above which the price could revisit $7.85.

More Losses?

If Chainlink’s price fails to climb above the $6.80 resistance level, there could be a downside extension. Initial support on the downside is near the $6.50 level.

The next major support is near the $6.40 level, below which the price might test the $5.90 level. Any more losses could lead LINK toward the $5.75 level in the near term.

Technical Indicators

4 hours MACD – The MACD for LINK/USD is losing momentum in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for LINK/USD is now above the 50 level.

Major Support Levels – $6.50 and $6.40.

Major Resistance Levels – $6.80 and $7.00.