Chainlink (LINK) rallied more than 40% and traded to a new all-time high at $8.530 against the US Dollar. It is currently correcting lower, but dips are likely to find support near $7.200.
- Chainlink token price extended its rally above the $7.500 and $8.000 resistance levels against the US dollar.
- The price traded to a new all-time high at $8.530 and it is currently correcting lower.
- There is a major bullish trend line forming with support at $7.000 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
- The pair is likely to extend its rise towards the $10.00 level as long as it is above the $7.000 support.
Chainlink (LINK) Rallies 40%
In the last technical analysis of chainlink (LINK), we discussed why there could be more upsides above $6.500 and $7.000 against the US Dollar. LINK did break the $7.000 resistance and extended its rally by more than 40%.
It even surged above the $8.000 resistance and settled well above the 100 simple moving average (4-hours). A new all-time high is formed near $8.530 and the price is currently correcting lower, while major cryptocurrencies (bitcoin and Ethereum) are struggling to clear key hurdles.
LINK is currently correcting lower below the $8.200 level. An initial support is near the $7.880 level or the 23.6% Fib retracement level of the recent rally from the $5.729 low to $8.530 high.
LINK price above $8.000. Source: TradingView.com
The first major support on the downside is near the $7.200 and $7.150 levels. It is close to the 50% Fib retracement level of the recent rally from the $5.729 low to $8.530 high. More importantly, there is a major bullish trend line forming with support at $7.000 on the 4-hours chart of the LINK/USD pair.
If chainlink token price stays above the $7.200 and $7.000 support levels, it could start a fresh increase. An initial resistance is near the $8.200 and $8.500 levels. A clear break above the $8.500 level might open the doors for a push towards the $10.00 barrier in the coming days.
Dips Remain Supported
If LINK price corrects lower, the bulls are likely to protect the $7.200 and $7.000 support levels. A successful close below the $7.000 support might push the price into a major correction phase.
In the mentioned case, the price could revisit the $6.400 support level (the recent breakout zone). Any further losses may perhaps start a bearish wave towards the $5.000 level.
Technical Indicators
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 well into the overbought zone.
Major Support Levels – $7.880, $7.200 and $7.000.
Major Resistance Levels – $8.200, $8.500 and $10.00.
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