Chainlink (LINK) started a fresh increase, but it struggled to clear the .00 resistance. There is now a risk of a sharp decline below .50 if there is no break above .00.
- Chainlink token price is struggling to gain momentum above .00 and .10 against the US dollar.
- The price is still trading well above .50 and the 100 simple moving average (4-hours).
- There was a break above a major contracting triangle with resistance near .65 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
- The pair could nosedive below .50 if it continues to struggle near .00.
Chainlink (LINK) Price is Facing Hurdles
After a test of the .80 resistance, there was a downside correction in chainlink (LINK) below .00. The price even broke the .50 support, but it remained well bid above the .25 support and the 100 simple moving average (4-hours).
A low is formed near .26 and the price is currently recovering higher. There was a break above a major contracting triangle with resistance near .65 on the 4-hours chart of the LINK/USD pair.
The pair broke the .80 resistance level, plus the 50% Fib retracement level of the downward move from the .82 high to .26 low. However, the price faced a strong resistance near the .00 and .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 .82 high to .26 low. The price is currently moving lower and trading with a bearish angle below .85. The next support is near the .50 level.
The main support is near the .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 .60 level.
Fresh Increase?
If chainlink’s price manages to stay above .50, there are chances of a clear break above the .00 resistance level. The bulls need to gain strength above .10 for a sustained upward move.
If they succeed, the price might even surpass the .50 level. The next major resistance is near the .80 zone, above which the bulls might aim a test of the .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 – .60, .50 and .25.
Major Resistance Levels – .00, .10 and .80.