- Chainlink token price boomed after breaking $ 22.00 and trading towards $ 26.00 against the US dollar.
- The price corrects the $ 25.89 gains and is well above the simple 100 (4 hours) moving average.
- A large bullish trendline is forming with support near USD 21.50 on the 4-hour chart of the LINK / USD pair (Kraken data source).
- The price is likely to find strong buying interest near the USD 21.50 and USD 21.20 levels.
Chainlink (LINK) corrects gains
After a successful break of over $ 22.00, chainlink (LINK) gained bullish momentum above $ 24.00. The bulls strengthened, resulting in a push above the USD 25.00 resistance zone.
A new high in 2021 was formed near $ 25.89 and the price was well above the 100 simple moving average (4 hours). It is currently correcting lower and trading below the USD 25.00 level. There was a break below the 23.6% Fib retracement level from the recent swing low from $ 17.19 to the $ 25.89 high.
On the downside, there are many major supports that are near USD 21.50. A major bullish trendline is also forming with support near $ 21.50 on the 4-hour chart of the LINK / USD pair.
Source: LINKUSD on TradingView.com
The trend line is close to the 50% Fib retracement level of the recent swing low from $ 17.19 to the $ 25.89 high. As long as the link price is above the $ 21.50 level, there are chances of a sharp rise in the near term. An immediate resistance is close to USD 24.00.
The first major resistance is near USD 25.00, above which the price is likely to accelerate higher towards the USD 26.00 and USD 26.50 levels in the near term.
If the price of chainlink remains above USD 21.50, there is a risk of a larger decline. The next big support below USD 21.50 is near the USD 20.50 level.
Even more losses below the USD 20.50 level could jeopardize the USD 20.00 support in the near term. In the case mentioned, the price may revisit the USD 18.50 support.
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 just below the 50 level.
Key Support Levels – USD 21.50, USD 21.20 and USD 20.50.
Key Resistance Levels – USD 24.00, USD 25.00 and USD 26.00.