Chainlink (LINK) started a sharp decline from the $11.60 resistance zone. The price is now trading well below $10.50 and it seems like the bears are aiming a test of the $9.00 support.
- Chainlink token price started a major decline after it failed to clear the $11.60 resistance against the US dollar.
- The price is now trading below $10.20 and the 100 simple moving average (4-hours).
- There was a break below a crucial declining channel with support near $10.40 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
- The current price action indicates chances of more downsides below $9.80 and $9.50.
Chainlink (LINK) Price Dives 10%
In the past few sessions, there was an increase in selling pressure on chainlink (LINK) from the $11.60 resistance. The price gained bearish momentum below the $11.20 and $11.00 support levels.
The bears remained in action, resulting in a break below the $10.50 support. Moreover, there was a break below a crucial declining channel with support near $10.40 on the 4-hours chart of the LINK/USD pair. The pair is now trading below $10.20 and the 100 simple moving average (4-hours).
Source: LINKUSD on TradingView.com
It is also well below the 76.4% Fib retracement level of the upward move from the $9.79 swing low to $12.97 high. An initial support is near the $10.00 level, below which the price might find bids near the $9.79 swing low.
If there is a downside break below the $9.79 swing low, there is a risk of more losses below the $9.50 support. The next important support could be near the $9.00 level. It is close to the 1.236 Fib extension level of the upward move from the $9.79 swing low to $12.97 high.
Upsides Capped?
If chainlink’s price starts a corrective increase, it could face sellers near the broken channel support or the $10.50 level. The first key resistance on the upside is near the $10.80 level.
The next major resistance on the upside is near the $11.35 level, the 100 simple moving average (4-hours), and the channel trend line. A successful close above the $11.40 and $11.50 levels might could start a strong uptrend.
Technical Indicators
4-hours MACD – The MACD for LINK/USD is gaining pace in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for LINK/USD is now well below the 40 level.
Major Support Levels – $10.00, $9.80 and $9.00.
Major Resistance Levels – $10.40, $10.50 and $11.35.
