LINK/USD price bearish below $10.50 support area

ChainLink's token sank 11% over the past 24 hours, pushing technical analysts to forecast a potential slide toward $7.80 if sellers maintain control over price action. LINK/USD reached as high as $11

By Ray Crawford·3 November 2020·2 min read

LINK/USD price bearish below $10.50 support area

Key Points

ChainLink's token sank 11% over the past 24 hours, pushing technical analysts to forecast a potential slide toward $7.80 if sellers maintain control over price action.
LINK/USD reached as high as $11

ChainLink's token sank 11% over the past 24 hours, pushing technical analysts to forecast a potential slide toward $7.80 if sellers maintain control over price action.

LINK/USD reached as high as $11.69 during the session before a broader crypto market downturn drove the token down to $10.03. Buyers managed to recover it to $10.36 by the time of writing, but the move below a rising wedge pattern indicated that the token had further to fall.

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The $7.80 level carries significance because it marks the origin point of the rising wedge that has defined LINK's recent trading range. The token had bounced there in October on the way to $12.93, giving it credence as a support floor with weight behind it.

Fibonacci levels offer intermediate support zones for traders to watch. The 50% retracement of the swing from $9.40 to $12.93 sits at $10.14 and should function as a floor if selling continues to exert pressure. Should that level fail to hold, the 61.8% retracement at $9.40 becomes the line where bulls would attempt their next stand.

The path to recovery requires holding above $10. If LINK were to climb back above the 100-day moving average at $11.09, the token could challenge $12 as the primary resistance zone. A break through that level would open the path toward $12.83 and then toward $14.

The 4-hour chart shows worse technicals. LINK dropped below the lower boundary of a rising channel after breaking the 100-period moving average at $11.38 and the 50-period simple moving average at $11.36. Sellers then penetrated support at $11.20 and $11.00, trapping bulls in the $10.50 to $10.20 range.

Sellers kept the advantage. A break to $9.40 would confirm the bearish thesis.

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