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Chainlink (LINK) started a fresh decline after it failed near a major hurdle at $11.00 against the US Dollar. It is down 10% and it could accelerate lower below $8.00.
- Chainlink token price topped near a major resistance at $11.00 against the US dollar.
- The price is now trading well below the $10.00 pivot level and the 100 simple moving average (4-hours).
- There is a crucial bearish trend line forming with resistance near $9.50 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
- The pair could continue to move down below $8.50 as long as it is below $10.00.
Chainlink (LINK) Price is Showing Bearish Signs
In one the previous technical analyses, we discussed the chances of a strong rejection in chainlink (LINK) near the $11.00 resistance zone. The previous support zone acted as a strong barrier and the price dived from the $11.25 swing high.
There was a steady decline and a rejection pattern below the $10.00 level. The price even broke the $9.50 support level and settled well below the 100 simple moving average (4-hours).
The decline gained pace below the 50% Fib retracement level of the upward move from the $7.26 low to $11.25 swing high. More importantly, there is a crucial bearish trend line forming with resistance near $9.50 on the 4-hours chart of the LINK/USD pair.
LINK price trades below $9.50. Source: TradingView.com
The price is now trading near the key $8.50 support level. The next major support is near the $8.20 level since it is close to the 76.4% Fib retracement level of the upward move from the $7.26 low to $11.25 swing high.
The next major support is near the $8.00 level, below which the price is likely to gain bearish momentum below the $7.80 level. Any further losses could lead the price towards the $7.25 support.
Upsides Capped?
If chainlink’s price starts an upside correction from the $8.50 support, it is likely to face many hurdles. An initial resistance is near the $9.00 level.
The first major resistance is near the $9.20 level. The main resistance is near the trend line and the 100 simple moving average (4-hours), above which the bulls could attempt an upside break above $10.00.
Technical Indicators
4-hours MACD – The MACD for LINK/USD is now gaining pace in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for LINK/USD is now well below the 40 level.
Major Support Levels – $8.50, $8.20 and $8.00.
Major Resistance Levels – $9.00, $9.20 and $9.50.
