Key Takeaways:
- LINK price started a decent increase and surpassed $7.00.
- It cleared two bearish trend lines at $6.80 and $7.00 on the 4-hours chart.
- The recent breakout could set the pace for a move towards $8.25 and then $9.50.
Chainlink’s LINK formed a base above $6.20 and started a fresh increase. The price is showing bullish signs and might rise towards $8.25.
Chainlink (LINK) Price Starts Fresh Increase
After forming a base above the $6.20 level, LINK started a fresh increase against the US Dollar. The price was able to clear the $6.50 and $6.80 resistance levels.
There was a strong move above the $6.85 resistance zone and the 50 simple moving average (4-hours, blue), unlike bitcoin. The price climbed above the 23.6% Fib retracement level of the downward move from the $9.50 swing high to $6.20 swing low.
Chainlink 4-hours price chart | Source: LINK/USD on TradingView.com
Besides, the price broke two bearish trend lines with resistance near $6.80 and $7.00 on the 4-hours chart. It is now showing positive signs above the $7.00 resistance zone and the 50 simple moving average (4-hours, blue).
On the upside, immediate resistance is near the $7.50 level. The first major resistance is near the $7.85 level. It is near the 50% Fib retracement level of the downward move from the $9.50 swing high to $6.20 swing low.
The next major resistance is near the $8.25 level. A clear move above the $8.25 resistance level could set the pace for a sharp rally. In the stated case, the price could revisit the $9.50 resistance level. The next major resistance is nearly $10.00. Any more gains might open the doors for a move towards the $12.00 resistance.
Conversely, the LINK price might fail to clear the $7.50 resistance zone or $7.85. In the mentioned case, the price could start a downside correction. Initial support is near the $7.00 level. The next major support is near $6.70 and the 50 simple moving average (4-hours, blue).
A close below $6.70 may perhaps start a steady decline. In the stated case, the price might revisit the $6.20 support zone, below which there is a risk of a move to $5.50.
Overall, the LINK price is showing bullish signs above the $7.00 resistance. If the bulls remain in action, it could rise towards the $8.25 resistance or $9.50. If not, there could be a downside correction towards the $6.70 support zone.
