Chainlink’s LINK price has surged by over 40%, trading above $10. The bulls seem to be in control and could aim for a recovery towards the $12 resistance.
Chainlink’s price gains momentum above $10.00 resistance against the US dollar. The price is trading above the $10.00 mark and the 100-day simple moving average.
On the daily chart of the LINK/USD pair, a significant bullish trendline is forming with support near $8.60 (data source from Kraken).
The price could further rise towards the resistance levels of $11.25 and $12.00.
Chainlink’s price starts a new rally
In the past few days, the LINK price has started a strong rally against the US dollar. The price formed a base above the $7.00 mark before the bulls intervened. It experienced a strong surge above the $7.50 and $8.00 resistance levels.
In the last three days, the price has surged by over 40% and has surpassed many hurdles near $9.00. Bitcoin’s recent surge has also helped LINK overcome the $10.00 resistance. A new multi-week high is forming at $10.99. The price is now consolidating its gains well above the 23.6% Fib retracement level of the upward movement from the swing low of $7.11 to the high of $10.99.
LINK is now trading above the $10.00 mark and the 100 (4-hour) simple moving average. On the daily chart of the LINK/USD pair, a significant bullish trendline is forming with support near $8.60. The trendline is near the 61.8% Fib retracement level of the upward movement from the swing low of $7.11 to the high of $10.99.
Should there be a further upward move, the price could encounter resistance near $11.20. The first major resistance lies near the $12.00 zone. A clear breakthrough above $12.00 could potentially initiate a steady rise towards the levels of $12.20 and $12.50. The next major resistance lies near the $13.20 mark, above which the price could test the $15.00 mark.
Are dips in LINK limited?
If Chainlink fails to climb above the $11.20 resistance level, there could be a downside correction. The first support below lies near the $10.00 mark.
The next major support is around $9.00, below which the price could test the trendline support at $8.60. Further losses could lead LINK towards the $8.00 mark in the short term.
Technical indicators
4-hour MACD – The MACD for LINK/USD is gaining momentum in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for LINK/USD is now above the 50 mark.
Key support levels – $10.00 and $9.00.
Key resistance levels – $11.20 and $12.00.
