$LINK Price Eyes Recovery If It’s Able to Hold One Crucial Level
Chainlink (LINK) recently revisited the $12.00 support area and shows potential for a rebound above $13.50 and $15.00 resistance levels.
Despite efforts, Chainlink's price remains bearish below the crucial $15.00 resistance against the US dollar, trading below $14.20 and the 100 simple moving average (4 hours).
On the 4-hour chart of the LINK/USD pair from Kraken, a significant bearish trend line is forming near $13.50. A breakthrough above $15.00 resistance could trigger a notable upward movement.
Recent Performance:
- Chainlink witnessed a decline from levels above $18.00, dipping below $15.00 and entering a short-term bearish phase, similar to Bitcoin and Ethereum.
- The price tested the critical $12.00 support, forming a low at $11.92 before attempting a recovery. It climbed above $12.50, surpassing the 23.6% Fibonacci retracement level of the downtrend from $18.66 to $11.92.
- However, LINK continues to trade below $14.20 and the 100 simple moving average (4 hours). Immediate resistance is near $13.50, strengthened by a bearish trend line on the 4-hour chart.
Potential Upside:
- A breakout above $13.50 resistance may lead to an uptick towards $15.00, followed by $16.00 or the 61.8% Fibonacci retracement level from $18.66 to $11.92. Further gains could test $18.00, potentially reaching $20.00.
Possible Downside:
- Failure to breach $13.50 resistance could prompt selling pressure, finding support near $12.80 and $12.00. A breach below $12.00 might lead to further downside, testing $10.80, with $10.00 serving as significant support.
Technical Indicators:
- The 4-hour MACD for LINK/USD shows increasing momentum within the bearish territory. The 4-hour RSI is below 50, indicating bearish sentiment.
Key Levels:
- Support: $12.80, $12.00
- Resistance: $13.50, $14.00
Source - newsbtc.com