Chainlink’s LINK price remains within the $5.75 support area. A break out of the $6.25 resistance area could start a new rally for the price.
- Chainlink token price is showing positive signs above $6.0 against the US dollar.
- The price is trading near the $6.05 level and above the 100 simple moving average (4-hours).
- There is a major bearish trendline forming on the 4-hours chart of the LINK/USD pair with resistance near $6.10 (data source from Kraken).
- The price may gain bullish momentum above the $6.25 resistance zone.
Chainlink (LINK) Price Eyes Fresh Recovery
After the significant decline, LINK price found support near $5.75 against the US dollar. A low was formed near $5.74 and the price is currently attempting a recovery like Bitcoin and Ethereum.
There was some decent movement above the $5.85 and $6.00 levels. LINK is currently trading near the $6.05 level and above the 100 simple moving average (4-hours). But starting at $6.10, there are a lot of hurdles on the upside. Moreover, on the 4-hours chart of the LINK/USD pair, there is a major bearish trend line forming with resistance near $6.10.
The current price action suggests that the price is struggling near the trendline and $6.10. The first major resistance is near the $6.25 area. This is close to the 23.6% Fib retracement level of the downward move from the $7.91 swing high to the $5.74 low.
Source: LINKUSD on TradingView.com
A clear break above $6.25 could begin a new rally towards the $6.65 and $6.80 levels. The next major resistance is near the $7.10 level, a break above which could push the price back towards $7.50.
Another downside loss?
If Chainlink’s price fails to break above the $6.25 resistance level, the downtrend could extend. Initial support for the downside is near the $6.00 level.
The next major support is near the $5.75 level, below which the price may test the $5.60 level. Any further losses could push the price towards the $5.35 level in the near term.
technical indicators
4-Hour MACD – The MACD for LINK/USD is losing momentum in bearish territory.
4-Hour RSI (Relative Strength Index) – The RSI for LINK/USD is now above the 50 level.
Key support levels – $6.00 and $5.75.
Key resistance levels – $6.25 and $6.80.