Chainlink token price surged as high as $ 23.79 before starting a downside correction against the US Dollar.
The price is trading above the $ 20.00 support and is well above the 100 simple moving average.
On the 4-hour chart of the LINK / USD pair there is a connecting bearish trend line with resistance near $ 21.70.
The price could extend the losses to $ 18.20 before starting a new hike in the near term.
After a clear break above $ 20.00, Chainlink (LINK) extended its rally. It even moved above the $ 22.00 level and settled well above the 100 simple moving average.
It traded as high as $ 23.79 before starting a downside correction. There was a break below the $ 22.00 and $ 21.20 support levels. There was also a clear break below a contract triangle with support around $ 21.50 on the 4-hour chart of the LINK / USD pair.
The bulls lost control and the price dropped below the $ 20.50 level. However, the decline was limited and the price dropped to $ 19.90. LINK is currently trading above the $ 20.00 support and is well above the 100 simple moving average.
If the price of the chainlink cannot continue to rise above $ 21.70 and $ 22.00, it could drop further. The first major support is near the $ 20.00 level.
The next major support is near the $ 18.20 level, where the bulls are likely to take a strong stand in the near term.
4-hour MACD – The MACD for LINK / USD is gaining momentum in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI for LINK / USD is currently near the 50 level.
Support Levels – $ 20.00, $ 19.10 and $ 18.20.
Resistance Levels – $ 20.80, $ 21.70 and $ 22.00.