Chainlink’s LINK price is holding the $7.30 support zone. The price could start a fresh increase if it clears the $7.50 resistance zone.
Chainlink token price is showing positive signs above $7.30 against the US dollar.
The price is trading above the $7.40 level and the 100 simple moving average (4 hours).
There is a key declining channel forming with resistance near $7.50 on the 4-hour chart of the LINK/USD pair (data source from Kraken).
The price could gain bullish momentum above the $7.50 resistance zone.
Chainlink (LINK) Price Eyes Fresh Increase
After a strong increase, LINK price faced sellers near the $7.90 zone against the US Dollar. A high was formed near $7.91 and the price started a downside correction, unlike Bitcoin and Ethereum.
There was a move below the $7.60 and $7.50 levels. The price declined below the 50% Fib retracement level of the upward move from the $6.932 swing low to the $7.915 high. The price also spiked below the $7.40 level. However, the bulls are active near the $7.30 support.
LINK is trading above the 61.8% Fib retracement level of the upward move from the $6.932 swing low to the $7.915 high. It is also above the $7.40 level and the 100 simple moving average (4 hours).
Source: LINKUSD on TradingView.com
It is now facing resistance near the $7.50 level. There is also a key declining channel forming with resistance near $7.50 on the 4-hour chart of the LINK/USD pair. The first major resistance is near the $7.685 zone. A clear break above $7.685 may possibly start a fresh increase toward the $7.90 and $8.00 levels. The next major resistance is near the $8.20 level, above which the price could revisit $8.50.
More Losses?
If Chainlink’s price fails to climb above the $7.50 resistance level, there could be a downside extension. Initial support on the downside is near the $7.30 level.
The next major support is near the $7.15 level, below which the price might test the $7.00 level. Any more losses could lead the price toward the $6.85 level in the near term.
Technical Indicators
4 hours MACD – The MACD for LINK/USD is losing momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for LINK/USD is now near the 50 level.
Major Support Levels – $7.30 and $7.15.
Major Resistance Levels – $7.50 and $7.685.
