ChainLink rebounds above USD 8.40 after bears sank it new weekly low

LINK/USD touched $7.40 after extreme sell-off pressure saw it tumble from highs of $20

ChainLink’s price action has been one full of bleakness over the past few weeks, recent sell-off pressure sending LINK/USD to lows of $7.40. With Bitcoin and the rest of the cryptocurrency market looking weak as of writing, it also appears ChainLink could be in for a continuation of the downtrend if bulls fail to consolidate above $8.00.

Last week’s massive capital flight meant LINK/USD edged further away from it’s all-time high around $20 reached in August as its integration in the DeFi space peaked. Yesterday, the price dropped more than 12% to see it touch a new six-week low. The token is also more than 20% down over the past week, and nearly 58% off its peak.

Despite the downtrend, ChainLink is the top gainer among the top 20 largest cryptocurrencies in the market. LINK/USD is at the time of writing over 400%up on its price since the crypto market crash of March.

LINK/USD technical picture

Most coins are still seeing red, but ChainLink is turning green on the daily chart, with bulls likely to break $8.50 to strengthen its detachment from the rest of the market.

After LINK/USD lost its $9.00 support peg, sellers matched almost unimpeded to crack another major support level around $8.00. The freefall threatened to crash any bullish hopes of retaining support at critical levels that would make establishing a quick rebound to $10.00 in the short term easily achievable.

A look at the daily chart shows that if LINK/USD breaks above the 20-EMA at $10.60, a run to the 50 MA around $13.00 would help confirm a bullish reversal. In between, the 23.6% Fibonacci retracement level at $11.25 presents a notable hurdle.

The RSI is turning north, while the MACD is printing a hidden bullish divergence pattern to suggest bulls are gaining an upper hand.

However, as it is, that all depends on whether ChainLink marines maintain the upside momentum to retake control above $9.20. The area is home to a key price level that marked the latest rejection to a new weekly low of around $7.40.

LINK/USD is trading around $8.43 and is up 3.13% in the past 24 hours. Meanwhile, BTC/USD and top altcoins are still struggling with selling pressure.

Bitcoin is down 1.5% on the day, trading around $10,240 as of writing, while Ethereum is changing hands at $328 after dropping 2.95%. XRP/USD is at risk of losing $0.22, with its price nearly 5% down.