Cryptocurrency markets are known for their volatility, and Chainlink (LINK) is no exception. Recently, LINK experienced a sharp dip, causing concern among investors. However, just like Bitcoin and Ethereum, LINK has shown resilience, bouncing back from its recent low. Let’s dive into the latest price movements and analyze what’s next for Chainlink.
LINK Price Recovers: What Sparked the Rebound?
After facing a significant decrease, the price of Chainlink (LINK) found solid ground near the $6.00 mark against the US Dollar. A low point was established around $5.90, mirroring the broader market trends seen in Bitcoin and Ethereum. This low point acted as a springboard, initiating a fresh bullish momentum for LINK.
The recovery was swift and decisive, with LINK confidently breaching several key resistance levels:
- $6.50 Resistance: This level was overcome with relative ease, signaling growing buying pressure.
- $7.00 Resistance: Another significant hurdle cleared, reinforcing the bullish trend.
- $7.50 Briefly Tested: LINK even ventured above $7.50, reaching a peak near $7.46 before encountering selling pressure and initiating a downward correction.
Currently, LINK is undergoing a minor correction. We observed a slight dip below $7.25, with the price retracting under the 23.6% Fibonacci retracement level. This retracement is measured from the recent upward swing, taking the high at $7.46 and the swing low at $6.45 as reference points.
Key Support Levels Holding Strong
Despite the recent minor pullback, the overall outlook for Chainlink remains positive, supported by crucial technical indicators:
- Above $6.80 Mark: LINK’s price continues to trade comfortably above the $6.80 level, indicating this area as a robust support zone.
- 100 Simple Moving Average (4-Hours): The price is holding above the 100 SMA on the 4-hour chart, further confirming the bullish momentum in the medium-term.
- Bullish Trend Line: A significant bullish trend line has formed on the 4-hour chart for the LINK/USD pair. This trend line is providing dynamic support, currently positioned around $7.08.

Resistance Ahead: Can LINK Conquer $7.50 and Beyond?
While the recovery is encouraging, Chainlink faces immediate resistance in the $7.30 region. Overcoming this level is crucial for sustained upward movement. Let’s pinpoint the key resistance zones that LINK needs to conquer to continue its bullish trajectory:
- $7.50: Immediate Resistance: The $7.50 zone stands as the primary hurdle. A decisive break above this level could signal a strong continuation of the upward trend.
- $8.50 – $8.80: Next Major Targets: If LINK successfully surpasses $7.50, the next significant resistance levels lie in the $8.50 to $8.80 range. Breaking through these zones would indicate substantial bullish strength.
- $9.20: A Stiff Barrier: The $9.20 level presents another considerable barrier. Overcoming this resistance could pave the way for LINK to re-enter the $10 territory.
- $10.00: Psychological Level: The $10 mark is not just a price point but also a significant psychological level. Reaching and sustaining above $10 would be a major milestone for LINK.
Potential Downside Risks: What if Bulls Lose Steam?
Despite the current bullish sentiment, it’s essential to consider potential downside scenarios. If Chainlink struggles to overcome the $7.50 resistance, we might witness a gradual decline. Here are the key support levels to watch on the downside:
- $7.08: Trend Line Support: The bullish trend line currently around $7.08 offers initial support. A break below this trend line could signal weakening bullish momentum.
- $6.80: Horizontal Support: The $6.80 level remains a critical horizontal support zone. A drop below this could intensify selling pressure.
- $6.70 – $6.75: 61.8% Fibonacci Retracement: This range aligns with the 61.8% Fibonacci retracement level, measured from the swing low of $6.45 to the high of $7.46. It represents a significant support area.
- $6.50: Critical Support: If further selling pressure emerges, the price could potentially revisit the $6.50 level. A sustained break below this level could indicate a more pronounced bearish shift.
In Conclusion: Navigating Chainlink’s Price Path
Chainlink (LINK) has demonstrated a commendable recovery after its recent dip, mirroring the resilience seen in major cryptocurrencies like Bitcoin and Ethereum. The price action is currently balanced, with bulls attempting to overcome the $7.50 resistance while maintaining support above the crucial $7.00 level and the bullish trend line.
For the bullish scenario to unfold, a decisive break above $7.50 is essential. Success here could propel LINK towards higher targets in the $8.50 – $9.20 range and potentially even back to $10. Conversely, failure to break $7.50 could lead to a retest of lower support levels, starting with the trend line around $7.08, followed by $6.80 and potentially $6.50 in a more bearish scenario.
As with all cryptocurrency investments, it’s crucial to conduct thorough research and consider your risk tolerance. Keep a close eye on these key support and resistance levels as they will likely dictate Chainlink’s price trajectory in the near term. Stay informed and trade wisely!
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.