Credit: Original article published by newsbtc.

Chainlink (LINK) is down 10% and it broke the key $11.30 support zone against the US Dollar. The recent breakdown suggests high chances of more losses below $10.00 and $9.50.

  • Chainlink token price failed to clear the $13.50 resistance and declined steadily against the US dollar.
  • The price is now trading below the key $11.30 support and the 100 simple moving average (4-hours).
  • There was a break below a major contracting triangle with support near $11.80 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
  • The pair remains at a risk of a sharp decline below the $10.00 and $9.50 support levels in the near term.

Chainlink (LINK) is Diving

After a sharp decline, chainlink (LINK) found support near the $9.20 level against the US Dollar. The price started a decent recovery wave above the $11.00 and $12.00 levels, but it failed to clear the $13.50 resistance zone.

It even remained well below the $14.00 pivot level and the 100 simple moving average (4-hours). Conversely, there were positive moves in bitcoin above $10,700 and Ethereum remained well bid above the $355 support.

LINK is currently declining and it broke the 50% Fib retracement level of the upward move from the $9.20 low to $13.43 high. More importantly, there was a break below a major contracting triangle with support near $11.80 on the 4-hours chart of the LINK/USD pair.

LINK price breaks $11.000. Source: TradingView.com

The pair is now trading below the key $11.30 support and the 100 simple moving average (4-hours). It is testing the 61.8% Fib retracement level of the upward move from the $9.20 low to $13.43 high.

It seems like the bulls might struggle to protect losses and the price might decline further below $10.50. The next key support is near the $10.00 level, below which the bears are likely to aim a new monthly low below the $9.20 level.

Upsides Likely to be Capped?

If chainlink’s price starts an upside correction, the price might face sellers near the $11.30 level (the recent breakdown zone and now a major hurdle).

The main hurdle is near the $13.00 level and the 100 simple moving average (4-hours). A close above the $13.00 and $13.50 resistance levels is must to start a steady recovery wave in the near term.

Technical Indicators

4-hours MACD – The MACD for LINK/USD is now gaining pace in the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI for LINK/USD is well below the 35 level.

Major Support Levels – $10.50, $10.00 and $9.20.

Major Resistance Levels – $11.30, $13.00 and $13.50.

This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CryptosOnline.com does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.

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