LINK Technicals Suggest There’s Strong Bearish Case Forming

LINK technicals suggest there’s a strong case forming for a break below $8 as Chainlink started a fresh decline from the major hurdle at $11.00 against the US dollar. LINK is down by 10% and it could crash lower below $8.00 so let’s read more in our latest Chainlink news today.

The token price topped near the major resistance at $11.00 against the US dollar as the price is now trading below the $10.00 pivot level and the 100 simple moving average. There’s also a crucial bearish trend line forming near $9.50 on the 4-hour charts of the pair which could continue lower to $8.00 as long as it is below $10.00. The previous analysis explained that there are chances of a strong rejection in Chainlink close to the $11.00 resistance zone while the previous zone acted as a strong barrier and the price dropped from $11.25 swing high.

The LINK technicals suggest there’s a steady decline and a rejection pattern below the $10.00 level with the price breaking below the $9.50 settling below the 100 simple moving average. The decline gained pace below the 50% retracement level from the upward movement from the $7.26 low to the $12.2 swing high with a crucial bearish trend line forming with the resistance near the $9.50 on the 4-hour charts of the pair. The price is now trading close to the key support level of $8.50 while the next major support is near the $8.20 level since it was close to the 76.4% fib retracement level of the upward movement of the $7.26 low to the $11.25 swing high. The support is near the $8.00 level below which the price could gain bearish momentum below the $7.80 so further losses could lead the price to the $7.25 support.

If Chainlink’s price started an upside correction from the previous $8.50 support which will likely face many hurdles with an initial resistance close to the $9.00 level. The major resistance is near the $9.20 level with main resistances close near the trend line and the 100 simple moving averages above which the bulls will try and upside break above the $10.00. The MACD for the pair is gaining pace in the bearish zone the RSI for the pair is well below the 40 levels. Major support levels include $8.50 and $8.20 and $8.00 while the major resistances are set at $9.00 and $9.20 and $9.50.