Chainlink Could Lift-off Toward $8

Chainlink’s LINK price is showing positive signs above $6.00. The price could rise further if it clears the $6.30 and $6.50 resistance levels.

• Chainlink token price is showing positive signs and rising from $5.00 against the US dollar.
• The price is trading above the $6.00 level and the 100 simple moving average (4 hours).
• There was a break above a major bearish trend line with resistance near $5.10 on the 4-hour chart of the LINK/USD pair (data source from Kraken).
• The price could extend its recovery and rally toward the $8.0 resistance zone.

Chainlink (LINK) Eyes More Gains

After a major decline, LINK price found support near the $5.0 zone against the US Dollar. A low was formed near $5.004 and the price started a fresh increase, similar to Bitcoin and Ethereum.

There was a clear move above the $5.10 and $5.50 resistance levels. Besides, there was a break above a major bearish trend line with resistance near $5.10 on the 4-hours chart of the LINK/USD pair. The upward move gained pace above the $5.80 resistance.

LINK even jumped above $6.0 before the bears appeared. A high is formed near $6.37 and the price is now consolidating gains. Chainlink price is now trading above the $6.00 level and the 100 simple moving average (4 hours).

It is also showing positive signs above the 23.6% Fib retracement level of the upward move from the $5.00 swing low to the $6.37 high. On the upside, the price is facing resistance near the $6.35 zone.

Source: LINKUSD on TradingView.com

The first major resistance is near the $6.50 zone. A clear break above $6.50 may possibly start a fresh increase toward the $7.20 and $7.25 levels. The next major resistance is near the $7.80 level, above which the price could revisit $8.0.

Dips Supported?

If chainlink’s price fails to climb above the $6.50 resistance level, there could be a downside correction. Initial support on the downside is near the $6.05 level.

The next major support is near the $5.70 level, below which the price might test the 61.8% Fib retracement level of the upward move from the $5.00 swing low to the $6.37 high at $5.50. Any more losses could lead the price toward the $5.00 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 – $6.05 and $5.70.

Major Resistance Levels – $6.35 and $6.50.