Chainlink (LINK) found support near $7.000 after a sharp downside correction against the US Dollar. It is climbing again and it seems like the bulls are aiming a fresh high above $8.500 and $9.000.
Chainlink (LINK) is Gaining Bullish Momentum
Recently, we saw a sharp rise in chainlink (LINK) above the $7.000 and $8.000 resistance levels against the US Dollar. LINK traded to a new all-time high at $8.530 and settled well above the 100 simple moving average (4-hours).
It corrected lower sharply from the $8.530 high and declined below $8.000. However, the $7.000 support zone acted as a massive buy zone (as discussed in the last technical analysis).
A swing low was formed near $6.841 and the price started a fresh increase. It climbed above the $7.250 and $7.5000 resistance levels. The bulls were able to push the price above the 50% Fib retracement level of the downside correction from the $8.530 high to $6.841 low.
LINK price above $8.000. Source: TradingView.com
It even spiked above the $8.000 resistance, plus the 76.4% Fib retracement level of the downside correction from the $8.530 high to $6.841 low. LINK is currently consolidating gains above $8.000 and it is likely to continue higher.
Moreover, there is a crucial bullish trend line forming with support at $7.350 on the 4-hours chart of the LINK/USD pair. On the upside, the $8.500 zone is a crucial hurdle. If there is a clear break above $8.500, the bulls are likely to aim a test of $9.000. Any further gains might open the doors for $10.00 in the near term.
In the short-term, there could be a minor decline in LINK price below $8.000, but there are many supports. The first major support is near the $7.880 level.
The main support is near the $7.350 level, below which the price could start an extended decline towards the $7.000 support $6.850.
4-hours MACD – The MACD for LINK/USD is gaining momentum in the bullish zone.
4-hours RSI (Relative Strength Index) – The RSI for LINK/USD is currently above the 60 level.
Major Support Levels – $7.880, $7.500 and $7.350.
Major Resistance Levels – $8.500, $9.000 and $10.00.
Risk disclaimer: 76.4% of retail CFD accounts lose money.
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