Chainlink (LINK) is up around 20% from the $9.20 swing low against the US Dollar. It broke the $12.00 resistance, but now facing a major resistance near the $13.50 level.

• Chainlink token price started a strong recovery wave from the $9.21 monthly low against the US dollar.
• It gained pace above the $12.00 resistance, but is still below the 100 simple moving average (4-hours).
• There is a crucial bearish trend line forming with resistance near $13.00 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
• The pair must break $13.00 and $13.50 to continue higher in the near term.

Chainlink (LINK) Rally is Facing Hurdles

This past week, we saw a sharp decline in bitcoin, Ethereum, ripple, and chainlink (LINK) against the US Dollar. LINK broke many supports near $15.00 and the 100 simple moving average (4-hours) to move into a bearish zone.

The decline gained pace below the $13.50 and $12.50 support levels. It even broke the $10.00 level and traded to a new monthly low at $9.21. Recently, the bulls came into action and the price pumped above the $10.00 pivot level.

There was a break above the 23.6% Fib retracement level of the downward move from the $17.74 high to $9.21 low. Chainlink rallied 20% and it even broke the $13.00 level.

LINK price above $13.000. Source: TradingView.com

However, the price is now facing a major hurdle near the $13.00 and $13.50 levels. There is also a crucial bearish trend line forming with resistance near $13.00 on the 4-hours chart of the LINK/USD pair. The trend line coincides with the 50% Fib retracement level of the downward move from the $17.74 high to $9.21 low.

It seems like the bulls might struggle to clear the trend line and the $13.50 resistance. If they succeed, chainlink (LINK) might rise steadily towards the $15.50 and $15.50 levels in the near term.

Dips Likely to be Supported

On the downside, chainlink’s price is likely to find strong bids near the $11.50 and $11.20 levels. The next major support is near the $11.05 level.

A downside break below the $11.00 support level could push the price back into a negative zone. In the stated case, the price could continue to decline towards the $10.00 level.

Technical Indicators

4-hours MACD – The MACD for LINK/USD is slowly losing pace in the bullish zone.

4-hours RSI (Relative Strength Index) – The RSI for LINK/USD is still below the 50 level.

Major Support Levels – $11.50, $11.20 and $11.05.

Major Resistance Levels – $13.00, $13.20 and $13.50.