Key Takeaways
- Chainlink is gaining bullish momentum above the $7-resistance.
- LINK price cleared a major bearish trend line with resistance at $6.80 on the daily chart.
- The price shows bullish signs and could rally further if it surpasses $7.40.
YEREVAN (CoinChapter.com) — Chainlink’s LINK is climbing above the $7 resistance. The price could extend its rally toward the $8.40 and $9.20 levels soon.
Chainlink Price Outperforms Bitcoin and ETH
After forming a base above the $5.65 level, LINK price started a fresh increase against the US Dollar. The price moved above the $6.50 and $6.80 resistance levels to move into a bullish zone.
There was a close above the $7 resistance zone and the 50-day simple moving average (blue). The bulls even pushed the price above the 50% Fib retracement level of the downward move from the $8.44 swing high to the $5.63 low.
During the increase, LINK price cleared a major bearish trend line with resistance at $6.80 on the daily chart. The price is now signaling a bullish continuation with an immediate hurdle near the $7.40 level.
The 61.8% Fib retracement level of the downward move from the $8.44 swing high to the $5.63 low is near $7.40 to act as a hurdle. In the past few days, Chainlink performed well, especially against Bitcoin and ETH.
It is accelerating higher while others are retreating lower. Recently, Chainlink shared an adoption update highlighting ten integrations of 4 Chainlink’s services across six different chains.
It could continue accelerating if the LINK price clears the $7.40 resistance. The next major resistance is near the $8.50 level, above which there could be another 10-12% rally. In the stated case, the price could visit the $10 resistance level.
Downside Correction in LINK?
Conversely, Chainlink’s price might fail to clear the $7.40 resistance zone or $8.50. In the mentioned case, the price could start a downside correction. Initial support is near the $6.80 level. The next major support is near $6.50 and the 50-day simple moving average (blue).
A close below $6.50 may send the price toward the $6.00 support. Any more losses could lead the price toward the last swing low or even $5.50 in the coming days.
Overall, Chainlink’s LINK price signals a strong upward move above the $7 resistance level. If the bulls remain in action, it could rise toward the $8.50 resistance or $10. If not, there could be a drop toward the $6.50 support zone.
