Charted: Chainlink (LINK) Rejected $11, And It’s Vulnerable to a Drop Below $10.5

Aayush Jindal

Last Updated: June 11, 2024 2:07 pm

2 mins read

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Chainlink (LINK) started a fresh increase, but it struggled to clear the $11.00 resistance. There is now a risk of a sharp decline below $10.50 if there is no break above $11.00.

Chainlink token price is struggling to gain momentum above $11.00 and $11.10 against the US dollar.
The price is still trading well above $10.50 and the 100 simple moving average (4-hours).
There was a break above a major contracting triangle with resistance near $10.65 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
The pair could nosedive below $10.50 if it continues to struggle near $11.00.

Chainlink (LINK) Price is Facing Hurdles

After a test of the $11.80 resistance, there was a downside correction in chainlink (LINK) below $11.00. The price even broke the $10.50 support, but it remained well bid above the $10.25 support and the 100 simple moving average (4-hours).

A low is formed near $10.26 and the price is currently recovering higher. There was a break above a major contracting triangle with resistance near $10.65 on the 4-hours chart of the LINK/USD pair.

The pair broke the $10.80 resistance level, plus the 50% Fib retracement level of the downward move from the $11.82 high to $10.26 low. However, the price faced a strong resistance near the $11.00 and $11.10 levels.

Source: LINKUSD on TradingView.com

It seems like there was a rejection near the 61.8% Fib retracement level of the downward move from the $11.82 high to $10.26 low. The price is currently moving lower and trading with a bearish angle below $10.85. The next support is near the $10.50 level.

The main support is near the $10.25 level and the 100 simple moving average (4-hours), below which there is a risk of a sharp decline. The next major support is seen near the $9.60 level.

Fresh Increase?

If chainlink’s price manages to stay above $10.50, there are chances of a clear break above the $11.00 resistance level. The bulls need to gain strength above $11.10 for a sustained upward move.

If they succeed, the price might even surpass the $11.50 level. The next major resistance is near the $11.80 zone, above which the bulls might aim a test of the $12.00 resistance in the near term.

Technical Indicators

4-hours MACD – The MACD for LINK/USD is now in the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI for LINK/USD is declining and it is just below the 50 level.

Major Support Levels – $10.60, $10.50 and $10.25.

Major Resistance Levels – $11.00, $11.10 and $11.80.

Aayush Jindal

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