LINK Price Prediction: Chainlink Needs To Clear $6.25 For Hopes of a Fresh Rally

2023-09-04 05:04:26

Chainlink’s LINK price is holding the $5.75 support zone. The price could start a fresh increase if it clears the $6.25 resistance zone.

Chainlink token price is showing positive signs above $6.0 against the US dollar.
The price is trading above the $6.05 level and the 100 simple moving average (4 hours).
There is a key bearish trend line forming with resistance near $6.10 on the 4-hour chart of the LINK/USD pair (data source from Kraken).
The price could gain bullish momentum above the $6.25 resistance zone.

Chainlink (LINK) Price Eyes Fresh Recovery

After a major decline, LINK price found support near the $5.75 zone against the US Dollar. A low was formed near $5.74 and the price is now attempting a recovery wave, like Bitcoin and Ethereum.

There was a decent move above the $5.85 and $6.00 levels. LINK is now trading above the $6.05 level and the 100 simple moving average (4 hours). However, there are many hurdles on the upside starting with $6.10. Besides, there is a key bearish trend line forming with resistance near $6.10 on the 4-hour chart of the LINK/USD pair.

The current price action suggests that the price is struggling near the trend line and $6.10. The first major resistance is near the $6.25 zone. It is close to the 23.6% Fib retracement level of the downward move from the $7.91 swing high to the $5.74 low.

Source: LINKUSD on TradingView.com

A clear break above $6.25 may possibly start a fresh increase toward the $6.65 and $6.80 levels. The next major resistance is near the $7.10 level, above which the price could revisit $7.50.

Another Decline Losses?

If Chainlink’s price fails to climb above the $6.25 resistance level, there could be a downside extension. Initial support on the downside is near the $6.00 level.

The next major support is near the $5.75 level, below which the price might test the $5.60 level. Any more losses could lead the price toward the $5.35 level in the near term.

Technical Indicators

4 hours MACD – The MACD for LINK/USD is losing momentum in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI for LINK/USD is now above the 50 level.

Major Support Levels – $6.00 and $5.75.

Major Resistance Levels – $6.25 and $6.80.

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