Chainlink’s LINK price recently retested the $12.00 support zone, indicating a potential shift in market sentiment. While this retest could be seen as a bearish sign, it also presents an opportunity for a recovery wave to occur above the $13.50 and $15.00 resistance levels.
Despite the possibility of a recovery wave, Chainlink price is currently showing bearish signs below the $15.00 resistance level against the US dollar. The price is trading below the $14.20 level and the 100 simple moving average (4 hours), which could indicate a continuation of the downward trend.
There is a key bearish trend line forming with resistance near $13.50 on the 4-hour chart of the LINK/USD pair. If the price manages to clear the $15.00 resistance zone, it could potentially start a decent increase towards higher levels.
In the past few days, Chainlink experienced a major decline from well above the $18.00 level, similar to Bitcoin and Ethereum. The LINK price dropped below the $15.00 pivot level, entering a short-term bearish zone. However, the price found support at the $12.00 level and is now attempting a recovery wave.
Resistance Levels
Immediate resistance is near the $13.50 level, with a key bearish trend line forming at this level on the 4-hour chart. The next major resistance is at $15.00, and a clear break above this level could signal a steady increase towards higher levels such as $16.00, $18.00, and even $20.00.
If Chainlink’s price fails to climb above the $13.50 resistance level, there could be a fresh decline towards lower levels. Initial support on the downside is near $12.80, with the next major support at $12.00. Further losses could lead LINK towards $10.80 and eventually the $10.00 level in the near term.
The 4-hour MACD for LINK/USD is currently gaining momentum in the bearish zone, indicating a potential continuation of the downward trend. The 4-hour RSI for LINK/USD is now below the 50 level, further supporting the bearish outlook in the short term.
While the recent retest of the $12.00 support zone may have sparked hopes for a recovery wave, Chainlink’s price movement remains bearish below the key resistance levels. Traders and investors should exercise caution and conduct their own research before making any investment decisions in the volatile cryptocurrency market.
