Reason to trust
How Our News is Made
Strict editorial policy that focuses on accuracy, relevance, and impartiality
Ad discliamer
Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.
Chainlink (LINK) gained momentum after it broke the $13.00 resistance. It traded towards $14.25 before correcting lower sharply, but it seems like dips remain limited.
- Chainlink token price rallied above the $13.00 and $13.50 resistance levels against the US dollar.
- The price surged towards the $14.25 level and settled above the 100 simple moving average (4-hours).
- There was a break above a major contracting triangle with resistance near $13.05 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
- The price corrected lower sharply, but the previous hurdle near $13.00 is now acting as a support.
Chainlink (LINK) Is Holding $13.00
In the past few days, there was a steady rise in chainlink (LINK) above the $12.50 resistance zone. The price even settled above the $1.00 resistance and the 100 simple moving average (4-hours).
Recently, there was a sharp increase in bitcoin and Ethereum, resulting in a surge above $13.00. There was also a break above a major contracting triangle with resistance near $13.05 on the 4-hours chart of the LINK/USD pair.
The pair even climbed above $13.50 and traded to a new monthly high at $14.25 before correcting lower. There was a sharp decline below the $14.00 level. LINK traded below the 23.6% Fib retracement level of the recent rise from the $11.84 swing low to $14.25 high.
Source: LINKUSD on TradingView.com
However, the previous resistance near the $13.00 level is now acting as a strong support along with the broken triangle trend line. The 50% Fib retracement level of the recent rise from the $11.84 swing low to $14.25 high is also providing support.
On the upside, the price is facing a major hurdle near $13.65. A clear break and close above $13.65 could open the doors for more gains above the $14.00 resistance level. The next major resistance is near $14.25, above which the price could even clear $14.50.
Downsides Limited?
An initial support for chainlink’s price is near the $13.10 and $13.05 levels. The main support is forming near the $13.00 level (the previous breakout zone).
If there is a downside break and close below the $13.00 support zone, there is a risk of a bearish move towards the $12.20 support level or even towards the 100 simple moving average (4-hours).
Technical Indicators
4-hours MACD – The MACD for LINK/USD is slowly losing momentum in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for LINK/USD is correcting lower towards the 55 level.
Major Support Levels – $13.05, $13.00 and $12.20.
Major Resistance Levels – $13.65, $14.00 and $14.25.
