Chainlink Price Analysis: LINK Could Start a Fresh Increase above Key Resistances

Chainlink Price Analysis: LINK Could Start a Fresh Increase above Key Resistances

Chainlink’s LINK price has shown positive signs of recovery after facing a decline. The price is now correcting gains, but it is expected to find support near crucial levels, which could lead to a fresh increase in the near future.

Currently, Chainlink’s price is trading above the $6.50 level and the 100 simple moving average (4 hours), indicating positive signs in the market. This suggests that there is a possibility of further upward movement.

Connecting Bullish Trend Line

On the 4-hour chart of the LINK/USD pair, there is a connecting bullish trend line forming with support near $6.40. This trend line acts as a significant level of support, indicating that if the price reaches this level, it might find bids and start a fresh increase.

Recovery After Support

After a steady decline, Chainlink’s price found support near the $5.75 zone, forming a low at $5.74. Following this support level, the price started a fresh increase, similar to Bitcoin and Ethereum. It recovered above the $6.00 and $6.20 resistance levels, demonstrating the bulls’ strength in the market.

However, as the price approached the $7.00 zone, the bears appeared, leading to a correction in the gains. The price traded below the 23.6% Fib retracement level of the upward move from the $5.74 swing low to the $7.03 high. Despite this correction, Chainlink is still trading above the $6.50 level and the 100 simple moving average (4 hours), indicating underlying strength in the market.

Resistance and Support Levels

If there is a fresh increase, the price of Chainlink might face resistance near $6.80, followed by the first major resistance at the $7.00 zone. A clear break above $7.00 could possibly initiate a steady increase towards the $7.25 and $7.32 levels. The next significant resistance is near the $7.50 level, and if broken, the price could potentially revisit $7.85.

However, if Chainlink’s price fails to climb above the $6.80 resistance level, there could be a downside extension. The initial support on the downside is near the $6.50 level. The next major support is near the $6.40 level, which is also in confluence with the connecting bullish trend line. If this level is breached, the price might test the $5.90 level. Further losses could potentially lead the price towards the $5.75 level in the near term.

Technical Indicators

The MACD for LINK/USD on the 4-hour chart indicates a loss of momentum in the bullish zone. Additionally, the RSI (Relative Strength Index) for LINK/USD is currently above the 50 level, indicating positive market sentiment.

Chainlink’s LINK price has shown positive signs above key resistance levels, and it is expected to find support near crucial levels, such as $6.40, which could trigger a fresh increase in the near future. However, if the price fails to break above the $6.80 resistance level, there could be a downside extension, with potential support at $5.90 and $5.75. Traders should closely monitor these levels and consider the technical indicators before making any investment decisions.

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