- Chainlink token price traded as high as $ 23.79 before starting a downward correction against the US dollar.
- The price is trading above the USD 20.00 support and well above the simple 100 (4-hour) moving average.
- A connecting bearish trendline is forming with resistance near USD 21.70 on the LINK / USD pair’s 4hr chart (data source from Kraken).
- The price could hit losses as high as $ 18.20 before another surge starts in the near term.
Chainlink (LINK) Corrects Lower
After a clear break of more than $ 20.00 extended chain link (LINK) his rally. In fact, it shot above the USD 22.00 level and well above the simple 100 (4 hours) moving average.
It traded as high as $ 23.79 before starting a downside correction. There was a break below the USD 22.00 and USD 21.20 support levels. There was also a clear break below a contracting triangle with support at $ 21.50 on the 4-hour chart of the LINK / USD pair.
The bulls lost control and the price spiked below the USD 20.50 level. However, the decline was limited and the price traded as low as $ 19.90. LINK is now trading above the USD 20.00 support and well above the simple 100 (4-hour) moving average.
Source: LINKUSD on TradingView.com
An initial resistance for LINK is near USD 20.80. It is close to the 23.6% Fib retracement level of the recent drop from the high of $ 23.79 to the low of $ 19.90.
Additionally, a connecting bearish trendline is forming with resistance near USD 21.70 on the same chart. The trend line is close to the 50% Fib retracement level of the recent decline from the high of $ 23.79 to the low of $ 19.90. A clear break above trendline resistance and USD 22.00 could open the doors for a fresh momentum towards USD 24.00 and USD 25.00.
If chainlink’s price doesn’t stay above USD 21.70 and USD 22.00, it may correct further lower. The first major support is near USD 20.00.
The next big support is near the USD 18.20 level (the final escape zone), where the bulls are likely to take a strong position in the near term.
4-Hour MACD – The MACD for LINK / USD is gaining momentum in the bearish zone.
4-Hour RSI (Relative Strength Index) – The RSI for LINK / USD is currently close to the 50 level.
Key Support Levels – USD 20.00, USD 19.10 and USD 18.20.
Major Resistance Levels – USD 20.80, USD 21.70 and USD 22.00.