Chainlink (LINK) Rally Stalls At $6.6: Here’s Why Uptrend Is Intact

Aayush Jindal

1 year ago

2 mins read

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Chainlink (LINK) started a strong increase after it broke the $4.900 resistance area against the US Dollar. It traded to a new monthly high at $6.588 and it is currently correcting gains.

Chainlink token price rallied significantly above the $4.900 and $5.000 resistance levels against the US dollar.
The price traded to a new monthly high at $6.588 and it is currently correcting lower.
There is a connecting bullish trend line forming with support at $5.900 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
The pair is currently testing the $6.000 support and it is likely to bounce back.

Chainlink (LINK) Trimming Gains

This week, chainlink token price started a strong upward move from the $4.625 swing low against the US Dollar. LINK broke a major resistance area near $4.900 and $5.000 to start a fresh rally.

There was a successful close above the $5.000 level and the 100 simple moving average (4-hours). It opened the doors for more gains and the price rallied more than 25%, and outpaced other major cryptocurrencies, including bitcoin and ripple.

The upward move was such that the price spiked above $6.500 and traded to a new monthly high at $6.588. Recently, it started a downside correction below the $6.500 and $6.400 levels.

It broke the 23.6% Fib retracement level of the recent rally from the $4.625 swing low to $6.588 high. On the downside, the $6.000 level is currently acting as a support. There is also a connecting bullish trend line forming with support at $5.900 on the 4-hours chart of the LINK/USD pair.

LINK price rallies above $6.000. Source: TradingView.com

If there is a downside break below the trend line, the price could find support near the $5.600 level. It is close to the 50% Fib retracement level of the recent rally from the $4.625 swing low to $6.588 high.

On the upside, the $6.400 and $6.500 levels are important hurdles. A fresh increase above $6.500 may perhaps open the doors for a push above the $7.000 level.

$5.000 As Uptrend Support

If LINK price corrects lower below the trend line support and $5.600, it could start a major downside correction. The next support is near the $5.350 level.

The main uptrend support is near the $5.000 level (the recent breakout zone), which is likely to act as a strong buy zone in the coming days.

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 correcting lower and it could test 60.

Major Support Levels – $6.000, $5.900 and $5.600.

Major Resistance Levels – $6.400, $6.500 and $7.000.

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Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
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