LINK has lost 7% due to market correction
LINK’s recent rally is connected to broader crypto recoveries
Robinhood listing and entry into Fantom mainnet reinforces Chainlink fundamentals
Cryptocurrencies have been returning huge in the past week. As is expected, market corrections follow. The corrections open up new buy opportunities. That’s exactly what’s happening to Chainlink LINK/USD after losing 7% in a day.
Chainlink’s LINK recovered successfully from the support of $6.0 as most cryptocurrencies gained. The gains could also be a result of investor interest after Chainlink was listed on Robinhood.
Another development that could have influenced LINK’s rally is the entry to Fantom Mainnet. Fantom said that both Chainlink Keepers and Chainlink’s Verifiable Random Function went live on its mainnet. That proved that Chainlink was a reliable Oracle provider to smart contracts like Fantom.
LINK’s rally has now hit a snag, and it is important that investors understand the cycles for the token. The technical analysis below illustrates when LINK may rally next.
LINK stalls and corrects with $6.0 in sight
Source – TradingView
A technical outlook of LINK shows uniquely identifiable price patterns that can be useful to investors. The price has remained within the $6.0 and $7.3 range since the start of June. Keen investors would be good buying the support at $6.0 and selling at $7.3.
As the price hits the resistance, investors can sell now and consider buying the retracement. The token is already under bear pressure as the MACD line crosses below the moving average. The next price in sight is $6.0, although that depends on the prevailing crypto sentiment.
Chainlink’s LINK could continue to correct as technical indicators show. The buying zone is at $6.0, the established support. The established resistance to watch is $7.3. Investors should also watch for a potential breakout above $7.3 for sustained gains.