Chainlink (LINK) started a downside correction from the $11.80 zone against the US Dollar. The price is now trading near a major breakdown support at $10.60 and $10.50.
- Chainlink token price is correcting gains from well above the $11.50 level against the US dollar.
- The price is now testing the $10.60 support and it is well above the 100 simple moving average (4-hours).
- There is a short-term declining channel or a bullish flag forming with resistance near $10.95 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
- The pair could rally if there is a clear break above the $10.95 and $11.00 resistance levels.
Chainlink (LINK) Price Rallies 8%
In the past few days, there was a decent rise in chainlink (LINK) above the $10.00 resistance level. The price even broke the $10.50 and $11.00 resistance levels.
Finally, there was a break above the $11.50 resistance and the price settled well above the 100 simple moving average (4-hours). A high was formed near $11.82 and the price recently started a downside correction.
There was a break below the $11.20 and $11.00 support levels. The price even declined below the 50% Fib retracement level of the upward move from the $10.07 low to $11.82 high. More importantly, it seems like there is a short-term declining channel or a bullish flag forming with resistance near $10.95 on the 4-hours chart of the LINK/USD pair.
Source: LINKUSD on TradingView.com
On the downside, there is a crucial support near $10.60 and $10.50. The 61.8% Fib retracement level of the upward move from the $10.07 low to $11.82 high is also near $10.70.
On the upside, the bulls are facing a major hurdle near $10.95 and $11.00. A clear break above the $11.00 resistance level could open the doors for a steady increase in the coming sessions. The next immediate resistance is near the $11.50 level, above which the price could rally towards the $12.00 level.
If chainlink’s price fails to clear the $11.00 resistance, it could move down further. A downside break below the $10.60 and $10.50 support levels might increase the risk of a sharp decline.
The next major support is near the $10.00 level, below which the price might test the 100 simple moving average (4-hours) or even $9.60.
4-hours MACD – The MACD for LINK/USD is still in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for LINK/USD is now rising and it is just above the 50 level.
Major Support Levels – $10.60, $10.50 and $10.00.
Major Resistance Levels – $10.95, $11.00 and $11.50.