Chainlink (LINK) rallied more than 40% and traded to a new all-time high at $8.530 against the US Dollar. It is currently correcting lower, but dips are likely to find support near $7.200.

• Chainlink token price extended its rally above the $7.500 and $8.000 resistance levels against the US dollar.
• The price traded to a new all-time high at $8.530 and it is currently correcting lower.
• There is a major bullish trend line forming with support at $7.000 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
• The pair is likely to extend its rise towards the $10.00 level as long as it is above the $7.000 support.

Chainlink (LINK) Rallies 40%

In the last technical analysis of chainlink (LINK), we discussed why there could be more upsides above $6.500 and $7.000 against the US Dollar. LINK did break the $7.000 resistance and extended its rally by more than 40%.

It even surged above the $8.000 resistance and settled well above the 100 simple moving average (4-hours). A new all-time high is formed near $8.530 and the price is currently correcting lower, while major cryptocurrencies (bitcoin and Ethereum) are struggling to clear key hurdles.

LINK is currently correcting lower below the $8.200 level. An initial support is near the $7.880 level or the 23.6% Fib retracement level of the recent rally from the $5.729 low to $8.530 high.

LINK price above $8.000. Source: 

The first major support on the downside is near the $7.200 and $7.150 levels. It is close to the 50% Fib retracement level of the recent rally from the $5.729 low to $8.530 high. More importantly, there is a major bullish trend line forming with support at $7.000 on the 4-hours chart of the LINK/USD pair. If chainlink token price stays above the $7.200 and $7.000 support levels, it could start a fresh increase. An initial resistance is near the $8.200 and $8.500 levels. A clear break above the $8.500 level might open the doors for a push towards the $10.00 barrier in the coming days.

Dips Remain Supported

If LINK price corrects lower, the bulls are likely to protect the $7.200 and $7.000 support levels. A successful close below the $7.000 support might push the price into a major correction phase. In the mentioned case, the price could revisit the $6.400 support level (the recent breakout zone). Any further losses may perhaps start a bearish wave towards the $5.000 level. Technical Indicators 4-hours MACD – The MACD for LINK/USD is gaining momentum in the bullish zone. 4-hours RSI (Relative Strength Index) – The RSI for LINK/USD is currently well into the overbought zone. Major Support Levels – $7.880, $7.200 and $7.000. Major Resistance Levels – $8.200, $8.500 and $10.00.

Risk disclaimer: 76.4% of retail CFD accounts lose money.