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Chainlink (LINK) has recently demonstrated positive indicators, particularly with its price remaining strong above the $7.25 level against the US dollar. Additionally, trading above the crucial $7.30 mark and the significant 100 simple moving average (4 hours) highlights this bullish trend. A notable bullish trend line has been identified, providing support near the $7.25 area on the LINK/USD pair’s 4-hour chart, as evidenced by data from Kraken.
LINK Surpasses Bitcoin and Ethereum
Our earlier assessment of LINK’s price pointed out the possibility for further advancement beyond the $7.00 threshold against the US dollar. As a result, the asset not only maintained its position but also climbed past the $7.25 level. Importantly, Chainlink continued its ascent, exceeding the $7.50 mark and achieving a notable high of $7.56, outperforming major cryptocurrencies like Bitcoin and Ethereum. However, a minor correction brought the price below $7.40, prompting a test of the 23.6% Fibonacci retracement level from its rise from the $6.60 low to its $7.56 peak.
Furthermore, LINK remains above the $6.50 level and the essential 100 simple moving average (4 hours). LINK’s potential is clear with the ongoing development of a bullish trend line that finds support around the $7.25 level. Nevertheless, if LINK experiences further upward movement, it may face resistance near the $7.45 level. The primary resistance, however, is situated around the $7.50 area. A breakthrough past this zone could pave the way for a sustained rise targeting the $8.00 to $8.20 ranges. Additionally, surpassing the $8.50 resistance could enable LINK to challenge the $8.80 level.
Evaluating Downside Risks
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Chainlink may encounter a downside scenario if it fails to break through the $7.50 resistance. Initial support in this case is around the $7.25 level. The next significant support is near the $6.95 level or the 61.8% Fibonacci retracement level, traced from its rise from $6.60 to $7.56. If this support fails, LINK could target the $6.80 level. Any further decline could then redirect LINK towards the approaching $6.60 area.
Key Technical Data at a Glance
Four hours MACD: The LINK/USD MACD indicates diminishing bullish momentum.
Four hours RSI: LINK/USD’s RSI is above 50.
Principal Support Zones: $7.25 & $6.95.
Major Resistance Zones: $7.50 & $8.50.
The post Chainlink’s Bullish Trajectory: A Close Analysis of LINK’s Price Momentum appeared first on BitcoinWorld.
