Chainlink (LINK) is down 10%, breaking the key USD 11.30 support zone against the US dollar. The recent breakdown suggests high chances of more losses below USD 10.00 and USD 9.50.
- The Chainlink token price failed to lift the USD 13.50 resistance and steadily declined against the US dollar.
- The price is now trading below the key support at USD 11.30 and the simple 100 (4 hours) moving average.
- There was a break below a large contracting triangle with support near USD 11.80 on the LINK / USD pair’s 4-hour chart (data source from Kraken).
- The pair is at risk of a sharp decline below USD 10.00 and USD 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 USD 11.00 and USD 12.00 levels, but it failed to clear the USD 13.50 resistance zone.
In fact, it stayed well below the USD 14.00 pivot level and the simple 100 (4 hours) moving average. Conversely, there were positive moves in bitcoin above USD 10,700 and Ethereum remained well above the USD 355 support.
LINK is currently on the decline, breaking the 50% Fib retracement level of the upward move from $ 9.20 low to $ 13.43 high. More importantly, there was a break below a large contracting triangle with support at $ 11.80 on the 4-hour chart of the LINK / USD pair.
LINK price breaks $11.000. Source: TradingView.com
The pair is now trading below the key support at USD 11.30 and the simple 100 (4-hour) moving average. It tests the 61.8% Fib retracement level of the upward move from $ 9.20 low to $ 13.43 high.
It looks like the bulls could struggle to protect the losses and the price could fall further below USD 10.50. The next major support is near the USD 10.00 level, below which the bears are likely to aim for a new monthly low below the USD 9.20 level.
Benefits likely to be capped?
If chainlink price starts an upward correction, the price could run into sellers near the USD 11.30 level (the recent breakdown zone and now a major hurdle).
The main hurdle is near the USD 13.00 level and the 100 simple (4 hours) moving average. A close above the USD 13.00 and USD 13.50 resistance levels is necessary to start a steady wave of recovery in the near term.
4-Hour MACD – The MACD for LINK / USD is now gaining pace in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI for LINK / USD is well below the 35 level.
Key Support Levels – USD 10.50, USD 10.00, and USD 9.20.
Major Resistance Levels – USD 11.30, USD 13.00 and USD 13.50.